The UK economy will only start to recover in 2010 with economic output forecast to fall by more than 1% in 2009, according to Chancellor Alistair Darling.
Unveiling the Treasury's Pre-Budget Report in Parliament today, Darling forecast GDP would drop to just 0.75% at the end of 2008, before going negative next year. The Chancellor now believes UK GDP will tumble by between 0.75% and 1.25% during 2009, with negative growth until at least the end of June 2009. During the last Budget in March, the Treasury had forecast economic growth of 2.5% during 2009. The recent revision is the most dramatic on record. As a result, the Government says it is stepping in to support businesses and families with a fiscal stimulus package worth £20bn, arou...
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