PRLog (Press Release) -
Apr 27, 2010 -
“SourceOne International”
strategists say the fact that the United Kingdom’s economic recovery has virtually ground to a halt before the parties contesting the May 6th general election have even laid out their plans for budget deficit reduction means that the country is “very likely” to suffer from a double dip recession when the inevitable austerity measures are implemented.
http://news.bbc.co.uk/2/hi/8503090.stmWithout the measures, it is likely that the UK will lose its AAA sovereign credit rating and join the ranks of several other nations that have suffered the ignominy of a ratings downgrade including Greece and Ireland.
“SourceOne International”
conceded that the first estimate of GDP is based on just 40% of the data the total ONS will ultimately receive and it was likely that revisions would be made but analysts at the firm said that the number demonstrated the lack of impact that quantitative easing had had on growth.
The figures capped what had been a disappointing week for the UK in terms of economic data. The markets learned that the UK had a higher deficit than originally thought, inflation rose, unemployment rose and retailers reported sluggish sales.
“SourceOne International”
believes that Britain will face a prolonged period of austerity despite having the ability to devalue its currency unlike Greece.
The country needs to raise £600bn over the next three years and this is likely to prove difficult if it debases the value of the pound and investors demand similar or higher yields than they have of Greece.
Photo:
http://www.prlog.org/10648956/1
