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Experts disappointed by Chancellor's economic forecast

While yesterday Alistair Darling had one of the most difficult tasks in the Labour government there are many who believe he failed to grasp the seriousness of the UK economic downturn. His admission that the UK economy would fall by a further 3.5% this year was in line with many economic forecasts but his expected return to growth of 1.25% next year and 3.5% in 2011 is optimistic in the extreme according to many experts.

Indeed the International Monetary Fund (IMF) recently suggested that the UK economy would fall by more than 4% this year and while 2010 would see a much improved performance the economy would still not escape the clutches of recession falling by an estimated 0.1%. This diverse set of forecasts for the UK economy have caused significant confusion and disappointment in equal measures with the UK government out on a limb and with little support from the international economic arena.

When you also consider that public sector spending is directly linked to the performance of the economy, the suggested £15 billion of "efficiency savings", and no significant reduction of public sector investment, will see UK debt continue to grow and grow. Many experts are already forecasting a significant reassessment of the situation in the November pre-budget.

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