U.K. economy to shrink 1.5%
LONDON – Britain's economy will shrink by 1.5 per cent next year and unemployment could reach 2.5 million in 2010, up from the current 1.8 million, says a leading London think-tank.
However, the National Institute of Social and Economic Research said that Britain's Treasury could curb the downturn through increased spending.
It forecast that a 30 billion pound (US$45 billion) government package of tax cuts and higher government spending would improve growth by one percentage point, making the overall economic contraction in 2009 just 0 businesscards.5 per cent.
British Treasury head Alistair Darling is due later Monday to announce economic measures to help the economy.
"A co-ordinated fiscal expansion would significantly lessen the pain of the current recession," the report said.
Filed under: technology by Fred