Date: Tuesday 31 Jul 2012
The Organization for Economic Cooperation and Development (OECD) has today become the first international body to forecast an outright contraction for the UK economy this year.
"Most of it is really about the external environment - the Eurozone crisis is going to weigh on the UK in the coming months," Christophe Andre, Acting Head of the Organisation for Economic Cooperation and Development's (OECD) UK desk, told Reuters on Tuesday.
"Under these circumstances you cannot expect much more than very slow growth (...) GDP will probably fall in 2012," he added.
That as the outsized drop seen in the first half of the year more than makes up for the rebound expected this quarter.
Asked whether the government should loosen its austerity drive, the OECD economist reportedly pointed to comments from OECD head Angel Gurria, who backed Chancellor George Osborne's plan.
"There are particularly acute dangers on appearing to waver or appearing to hesitate or appearing to lose a little bit of nerve," Gurria said last week.
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