UK No Triple Dip Recession

UK No Triple Dip Recession.

Claims made by the lobby group for the Confederation of British Industry (CBI), the UK's leading independent employers' organisation, suggest that the UK will not drop into a triple dip recession.

The UK economy shrank in the last quarter of 2012 and forecasters are predicting a gloomy 1 quarter for 2013.  The CBI suggests that the UK may just avoid another fall and marginally increase GDP by 0.3%.  Therefore, just about avoiding another dip, therefore a so-called third “recession”.

The CBI predicts the UK growth will be lower than their original prediction of 1.4% and come in at around 1%.

Our view
Either way, this does make great reading.  Pressure is ever mounting on the Chancellor and the Bank of England to release more money into the economy, in the same way that the US has done to stimulate growth.

Economic stimulus equals inflation which equals devaluing public sector debt.  Expect some stimulus in the Budget on 20th March 2013.  

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