LONDON (MNI) – The UK economy will grow by less than 1% both this
year and next, the National Institute of Economic and Social Research
predicts.
NIESR forecasts 2011 growth of 0.9% and 0.8% in 2012. The institute
predicts inflation will fall back sharply from 4.4% this year to 2.3%
next.
NIESR’s growth forecasts are way below the Bank of England’s
implied predictions in its August Inflation Report of around 1.7% for
this year and 2.2% for next year. The BOE is expected to cut this year’s
growth forecast sharply in its upcoming November Inflation Report, but
it would be a shock if it was as gloomy as NIESR over next year’s
outlook.
NIESR said the chances of the UK falling back into a technical
recession, two successive quarters of negative growth, were around 50%.
–London bureau: +4420 7862 7491; email: drobinson@marketnews.com
[TOPICS: M$B$$$,M$BDS$,M$$BE$]
