subject: Uk Economic Growth Not Set To Rise As Quickly As Predicted [print this page] It is expected that The Bank of England will soon announce that a downgrade in the initial growth figures they predicted is required. The original figures were compiled in May this year and predicted 1.5% would occur this year and 3.4% would occur next year. This now looks near impossible.
It has already been suggested that the Bank of England agree that the UK have a very uncertain chance of a sustained recovery. The rapid growth between the months of April to June showed a degree of false positivity it seems. The signs that the economy is now stalling and that the property market is also suffering are present. Lots of estate agencies have described seeing a fall in house prices for the first time in July.
Fears that Great Britain is entering into a double dip recession are now looking likely to become reality.
The situation in America seems equally as grim although America's central bank have attempted to calm discussions regarding a double dip recession with the promise of an extended period of low interest.
The American Federal Reserve are said to be purchasing bonds issued by the government similarly to the Bank of England's plans to print new money.
The recent events should hopefully see the Bank if England holding British interest rates at 0.5% even though the signs of inflation are there.
Many people are also still concerned about the employment situations here in the UK, America's current unemployment statistics show that nearly 10% of people who could be in jobs are unable to find work and that lots of employers are not taking on staff, or planning on taking on staff soon.
The fear of a double dip recession is now a very real possibility and this unfortunately means that the employment and debt in the UK is not set to recover anytime soon.
