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Income per head will take five years to reach pre-recession levels

It may take another five years for income per head to return to the level it was before the recession hit in early 2008, said a leading think-tank.

The National Institute of Economic and Social Research (NIESR) sees total UK GDP falling 4.3% in 2009 before growing 1% in 2010 and 1.8% in 2011.

This echoes earlier NIESR forecasts but suggests a slower rate of recovery.

NIESR expects government borrowing to hit £165.7bn this year, less than the £175bn the government predicts.

The research body sees income per head - GDP per capita - taking until March 2014 to return to the level it was in the first quarter of 2008, when the recession kicked in.

Source: BBC News

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