Thursday, 6 September 2012

Economy is getting worse, warns OECD: As forecast is cut, ministers say there's no quick fix

Hard times: The UK is unlikely to pull out of its double-dip recession this quarter, global economic think tank the OECD has warned, meaning more suffering for British businesses and consumers

* International experts expect output to shrink by 0.7 per cent this year
* Paris-based OECD had predicted 0.5 per cent growth in May
* Downgrade is blow to George Osborne's battle to drag UK out of recession

The outlook for the economy is worsening, international experts said yesterday.

The Organisation for Economic Cooperation and Development expects output to shrink by 0.7 per cent this year – far worse than the 0.5 per cent growth it had predicted in May.

Coalition ministers warned however that there was no ‘quick fix’ for the economy while ridiculing Labour’s solution to add more debt.

The Paris-based OECD also cut its forecasts for other major developed countries including Germany, France and Italy.

But the UK downgrade was by far the worst and came as a blow to Chancellor George Osborne’s battle to drag the economy out of recession and wipe out the  deficit inherited from Labour.

David Cameron said yesterday that it was difficult to kickstart growth: ‘If there was a button you could push in Whitehall which just said “right, growth comes” I would have pushed it long ago. (Read further: Source)