Britain heading toward recession: OECD
Posted
New figures show that Europe's economy is contracting more severely than predicted, with Britain in particular nearer a recession.
The latest survey by the Organisation for Economic Co-operation and Development (OECD) says that financial market turmoil, a downturn in the housing market and high commodity prices are all having an impact on global growth.
The OECD now forecasts that the economies of Germany and Italy will not grow at all in the current three month period. France will grow, but by very little.
In an updated forecast for the leading developed countries, the OECD predicts that the British economy will contract for the remainder of this year - a recession by a commonly used definition.
The report says the downturn in housing markets which is central to the problems, especially in the United States and the UK, is still unfolding.
More encouragingly, the OECD does say that some moderation of inflation is to be expected.
- BBC
