Two More Years of UK Recession
Published / Last Updated on 06/11/2012
Two More Years of UK Recession.
The National Institute of Economic and Social Research has suggested the UK will remain in recession for another two years.
Whilst not a technical recession, where the economy does not grow, it suggests that economic growth may stay at extremely low levels until 2014.
The UK economy only just pulled itself from the depths and into growth of just 0.5% for the third quarter of 2012.
Our view
We suggest this is a carbon copy of the 1980’s and we do not expect to see any real growth until 2015-16 when inflation will start to bite and drive up wages and prices. Remember yuppies? These were not benefactors of an economic miracle, merely people earning more driven by inflation growth and inflation adjusted investment returns.