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SELL YOUR HOME QUICKLYOECD has bleak economic outlook for the UK
The Organisation of Economic Cooperation and Development (OECD) recently publicised its prediction that the UK economy is heading for a “significant down-swing” that will become more pronounced with even lower house prices in 2009.
According to a report in The Guardian, the OECD’s half-yearly report indicates an expected economic growth rate of only 1.8% this year, and predicts a 1.4% decrease in 2009 – which would be the lowest growth rate since the 1992 economic recession.
These figures clearly contradict those of Chancellor Alistair Darling, who said previously that the UK economy would slow down by approximately 2% this year, before recovering with a growth rate of 2.5% in 2009.
An OECD spokesperson had this to say to the contrary: "A significant down-swing is expected over coming quarters as both investment and consumer demand are damped by tight credit conditions and housing market weakness."
Experts from the organisation contend that the so-called “credit crunch” will continue to have a severe impact on both investment and the housing market. The OECD warned the Bank of England against interest rate cuts, due to the escalating danger of inflation.