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The UK is back in recession, says OECD

The UK is back in recession with negative growth expected in Q1 2012, the Organisation for Economic Co-operation and Development claims.

In its interim economic assessment releasd today the think tank says it expects the UK economy to shrink by 0.1% in Q1 2012, or 0.4% year on year.

It follows a drop of 0.3% in GDP in Q4 2011 meaning the UK will have suffered two quarters of falling output, the most widely accepted definition for a recession.

The OECD expects UK growth to rebound by 0.5% in Q2.

Japan and the United States are both expected to see strong growth in Q1 of 3.4% and 2.9% respectively.

Eurozone countries are faring worse with only Germany seeing growth of 0.1% in the first quarter while Italy’s economy will shrink by 1.6% and France’s output will fall by 0.2%.

The report states: “The situation for the three largest euro area countries in aggregate is expected to remain fragile, with negative growth projected for the first quarter of 2012 and a moderate rebound in the second quarter.

“Recent positive indicators suggest that activity in Germany may accelerate through the first half of the year. Activity in France is projected to be broadly flat. In Italy weak industrial production and household sentiment are suggestive of recession for the first two quarters of the year. That said, the most recent indicators have been more positive, resulting in slightly better projected growth for the second quarter.”


Another interest-only blow for the market

Nationwide’s decision to slash its interest-only LTV from 75% to 50% has been branded a blow for the mortgage market. The mutual made the change across its residential mortgage range last week in response to changes by other lenders. James Lindon-Travers, mortgage practice principal at Lindon-Travers Associates, says: “This is another nail in the coffin […]

Marketwatch – March 2012

After a Budget that had more leaks than Thames Water, last week was busy, particularly for those working in the high net worth market. Thank goodness for the conditional exchange.

High LTVs did not cause crisis – youth must not be denied right to own a home

I think it was PR expert John Wriglesworth who contended that houses should be bought for nesting, not investing. You would need to have been around a long time to remember that. He said it in response to the last recession in the early 1990s. I like to think that more than 30 years as […]


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