Britain to be hit by recession again in 2012

December 27th, 2011 - 6:00 pm ICT by IANS  

London, Dec 27 (IANS) The British economy was facing a “bleak” new year, with a real risk of recession returning during 2012, a think tank has warned.

The only good news for consumers was an expected fall in inflation that will ease the squeeze on spending power in households which remain in work, says the report by the Institute for Public Policy Research.

Many European economies were already back in recession, Sky News said.

“As we enter 2012, it seems the word that best describes the outlook for the British economy is ‘bleak’,” the institute’s chief economist Tony Dolphin said.

“… country after country is being forced to adopt extreme austerity measures that will result in large falls in output,” he said.

“Going into 2012, the risk is that talk of austerity at home and crisis in Europe will dampen spirits to such an extent that the economy drifts into recession.”

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