Brown concedes recession 'likely'
By Lee Wild
Brown has finally admitted what everyone else already knew,
that the global economic slowdown is set to plunge Britain
made in parliament today under pressure from Tory leader
David Cameron, echo sentiments expressed by Bank of England
governor Mervyn King.
of the Bank of England said last night that not since the
First World War has the international banking system been
so close to collapse and I agree with him,” said Brown.
taken action on the banking system, we must now take action
on the global financial recession which is likely to cause
recession in America, France, Italy, Germany, Japan and
- because no country can insulate itself from it - Britain
and the pound fell to a five-year low versus the dollar
as markets absorbed the news.
of a squeeze on real take-home pay and a decline in the
availability of credit poses the risk of a sharp and prolonged
slowdown in domestic demand. It seems likely that the UK
economy is entering a recession,” King told business
leaders in Leeds Tuesday.