Think tank predicts 2012 for UK recovery
The influential think tank, National Institute of Economic and Social Research (NIESR), said that the current economic downturn is following a similar path to that of the early 1980s slowdown.
While the figures have not yet reached those of the recession in the 1980s, the current economic decline is “very similar” to the one which started in 1979, according to the Institute.
Therefore, the NIESR is forecasting that the UK economy could take until 2012 to recover. According to the NIESR, the economy has contracted by 4.2% since May last year.
The Institute, which has a good track record of forecasting British economic growth, is forecasting a 1.5% decline in the first quarter of this year, with their predictions being consistent with other forecasts relating to economic growth.
Chancellor Alistair Darling recently told the BBC’s Andrew Marr Show that “the downturn since last autumn has been far deeper than people expected in any part of the world.”