The British Chambers of Commerce's March 2009 Economic Forecast paints a grim picture of the UK economy but predicts that the recession will not be as severe as it became in the 1980s. Its prediction comes after the MPC decision to slash the base rate by a further half percentage point to an all time low of 0.5% and the Bank of England's announcement that it will create £75 billion of new funds to help kick start the struggling economy. In its forecast, which comes just weeks before the Chancellor's Budget Report, the BCC said that UK unemployment would rise to 3.2 million - 10 per cent of the country's workforce - by the second half of 2010. "UK prospects have worsened significantly since out last forecast in January," said chief economist at the BCC, David Kern. "We are now predicting much larger UK GDP declines. Consequently, we now expect bigger unemployment increases and larger budget deficits."
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.