Britain to return to recession in 2012November 28th, 2011 - 8:14 pm ICT by IANS
London, Nov 28 (IANS) Britain will return to recession next year, and will need to print more money, says a report by an international economic research group.
The Paris-based Organisation for Economic Cooperation and Development (OECD) said in its semi-annual report on the economic outlook in its 34 member states that weak demand and fiscal consolidation has halted recovery in Britain.
Six months — or two consecutive quarters — of negative economic growth indicate a recession, said Sky News.
The OECD said the Bank of England in order to support growth should expand its quantitative easing programme to 400 billion pounds, and pump a further 125 billion pounds into the economy by buying government bonds.
It warned that unemployment could reach nine percent by 2013, but that inflation would fall below the two percent target.
Recently, the British Chamber of Commerce (BCC) in its latest quarterly economic report said it expects growth to be “very weak” until mid-2012, and revised its prediction of gross domestic product (GDP) rise next year to 0.8 percent, less than half the 2.1 percent it had expected previously.
It also said it expected unemployment to increase by 150,000 over the next 12 months.
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