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No growth predicted for UK economy in 2010

The Organisation for Economic Cooperation and Development (OECD) is not expecting the UK economy to grow in 2010.

The UK economy is expected to shrink by 4.3% this year.

The OECD represents the 30 most industrialised countries and believes those economies will shrink by 4.1% this year.

It said the global downturn was now moderating after the sharp drop in the six months to March but the recovery would be “weak and fragile for some time”.

Global growth forecast from OECD Economic Outlook
 

  • UK 2009 -4.3%; 2010 0.0%
  • USA 2009 -2.8%; 2010 0.9%
  • Eurozone 2009 -4.8%; 2010 0.0%
  • Japan 2009 -6.8%; 2010 0.7%
  • OECD 2009 -4.1%; 2010 0.7%
  • World 2009 -2.2%; 2010 2.3%

The OECD said: "It looks like the worst scenario has been avoided. Even if the subsequent recovery may be slow, such an outcome is a major achievement of economic policy.

"Signs of impending recovery in the euro area are not yet clearly visible because of housing bubbles, damage to the financial sector, and export setbacks.”

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