The British finance minister Alistair Darling is expected next month to revise downwards its forecast for the presentation of the British economy in 2009. It will do so in the economic report to parliament before the budget discussions for next year, transmits Reuters. Sources from the British finance ministry have shared before the Agency on Thursday that an unexpectedly strong decline in first quarter will likely lead to a contraction of the economy by about 4.75 percent for the year instead of a set in drafting the budget 3.5%. The estimate to restore growth at the end of the year will not be changed. British economy decreased in 6 consecutive quarters, forming the most prolonged recession of at least 50 years, lagging behind other leading economies, are already restored. Reuters sources are moderately cautious in their expectations out of the recession around the end of the year, based on a recent survey by the British Union of Industrialists and data on retail sales in October. “We assume that the economy will show growth of around 0.2% -0.4% in the last quarter,” said a source from the ministry. Darling himself hinted in bringing down its forecast last Thursday, when he declared in parliament that his original forecast was in line with most experts when drafting her. “Since then, new data showed that most economies, including ours, have suffered a serious blow in the first quarter,” the minister said.
Read the full story