The prospect of a double-dip recession is finally being raised by the msm this morning with an article in The Independent. Despite the government’s attempts to place a different interpretation on the recent comments of the OECD it’s now being reported that:
“Britain remained “deep” in recession and faced a “bleak short-term outlook”.
“The recovery is likely to be slow and unemployment is expected to climb significantly,” it said, adding that the Treasury could do “considerably more” to fix the public finances.
Both warnings are at odds with recent market optimism and so-called green shoots suggesting that output in the economy may be recovering. But the Bank for International Settlements (BIS), which includes the Bank of England, the US Federal Reserve and the European Central Bank, said it feared that the problems of the world’s banks are far from fixed and could easily trigger a so-called “double dip” or “W-shaped” downturn. “A major cause for concern is the limited progress in addressing the underlying problems in the financial sector,” it said.
“A significant risk is therefore that the current stimulus will lead only to a temporary pick-up in growth, followed by protracted stagnation.”
UPDATE: Latest figures from the ONS show the sharpest decline in GDP for 51yrs