Expert predicts double-dip recession

Wednesday, April 21st 2010

Britain's economy may not pick up next year because of the possibility of a double-dip recession.

This is the view of Dr Tom Kirchmaier, visiting fellow of the financial Markets Group at the London School of Economics and Political Science, which is considered as one of the world's foremost social science universities.

He said: "I am inclined to think that we are likely to have a double-dip recession," adding this will have an effect on the UK's economic performance in 2011.

Dr Kirchmaier's comments follow the Ernst & Young ITEM Club spring 2010 quarterly forecast, published yesterday (April 20th).

It predicted there would be an economic recovery led by experts in 2011, but this year's outlook is "poor".

At the moment there is not enough strength of consumer spending power to sustain recovery, which is partly due to continuing risks of unemployment.

Dr Kirchmaier said competition in the export market will be "huge" in the future, with the US already stating it plans to double its exports by 2015.