UK recession will get worse - Ernst & Young

According to the Ernst & Young ITEM Club, the UK economy faces its first year of negative growth since 1992 next year, with GDP to fall by 1%. ITEM expects the economy to bottom out in the second half of next year, while growth will only pick up 1% in 2010. House prices will continue to plunge in 2009 ITEM says, with a further 10% fall predicted. However, one bright spot for the economy is falling inflation, allowing interest rates to be dropped to 3% next year. ITEM chief economist Peter Spencer says while the recent global financial intervention may have eliminated the threat of d...