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Eurozone uncertainty puts British economy on hold

0 Comment(s)Print E-mail Xinhua, January 16, 2012
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Britain's economic recovery is in a state of stagnation due to the political uncertainty in the eurozone, said the economic forecasting agency The Ernst & Young ITEM Club on Monday.

According to a report issued by the ITEM Club, deteriorating levels of confidence will see business investment stagnate in Britain 2012, whilst export prospects have already slowed.

"Britain is probably already in a technical recession and will struggle to reach positive growth until 2013," the report read.

It forecasted Britain's gross domestic product (GDP) to gain 0.2 percent in 2012 before increasing by 1.8 percent in 2013 and 2.8 percent in 2014.

"Figures for the last quarter of 2011 and the first quarter of this year are likely to show that we are back in recession and we are going to have to wait until this summer before there are any signs of improvement," said Peter Spencer, chief economic advisor to the Ernst & Young ITEM Club.

Spencer believed that the country would not see "a serious double dip" in the economy.

The ITEM Club estimated that investment in Britain fell by 2.6 percent in 2011 and would grow by just 0.4 percent in 2012.

The country's unemployment population in the meantime would approach 3 million.

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