After the recent gloomy news that GDP had shrunk by 0.7 per cent in the second quarter of 2012, today the Financial Times reports the long term outlook for the economy is not good. The FT reports:
The UK economy will shrink by half a per cent this year and grow only anaemically next year as it grapples with the weakness of its biggest trading partners, the National Institute of Economic and Social Research has forecast.The institute predicted the economy would contract by 0.5 per cent this year and grow 1.3 per cent next year, a significant reduction from its forecast three months ago of zero growth this year and 2 per cent next year.
The NIESR are a credible, respected and independent economic think tank. What they say carries weight, and their recent predictions have proved to be right. To see the full NIESR press release go here.
But you don't need to be an economics experts like those at the NIESR to realise George Osborne is wrecking the economy with his ideologically driven austerity measures. Time for Plan B.