UK economy 'faces growth slump'
Britain's economy could see a slowdown next year
Also In The News
|
Babyshambles' new album will not feature Kate Moss on its cover after all, a report claims. |  |
Sunday, 30, Sep 2007 12:05
Britain's gross domestic product (GDP) growth will slow from 2.7 per cent in 2007 to just 1.4 per cent next year, according to the Centre for Economics and Business Research (Cebr).
The economic research firm's monthly assessment of the economy's prospects blames the tightening of interbank credit availability for the pessimistic outlook.
Consumer spending, activity on the housing market and business investment growth will all take a hit as a result, Cebr predicts, but it says the economy will pick up again by late 2009.
Cebr spokesperson Mark Pragnell says this has major implications for prime minister Gordon Brown's electoral strategy.
Amid ongoing speculation about whether or not the former chancellor should call a snap poll this autumn, he argues that the difficult conditions approaching could create "considerable pressure" on his government.
"The economy will not be as favourable to the current administration as it is now until late 2009 or even 2010 - pushing the length of this parliament to its constitutional elastic limit. So a canny prime minister will be looking for dates this November or buying his diary for 2010," he said.