Britain is already affected by recession and facing a dual threat of slowing economic growth and rising unemployment, according to a survey released on Tuesday by the British Chambers of Commerce (BCC) that covered 5,000 companies.
Last summer, there was a significant decline in revenue and profits amid worsening economic forecasts and the threat of rising unemployment under the pressure of declining confidence across all sectors of industry, the BCC reported.
Britain is evidently sinking deeper into recession, the BCC further emphasized, calling on the government and the central bank to take urgent measures to avoid a major recession. The Bank of England has been urged to lower key interest rates by 0.5 percentage points this week, while the government should reduce corporate taxes.
Over the next two years, an increase in the number of unemployed by between 300,000 and 350,000 is expected, exceeding 2 million, the BCC further highlights. "Alarmingly, the results indicate an increasing danger of a stronger decline in economic activities and rising unemployment. These results support the view that the recession in Great Britain has already begun and is worsening. The domestic economy is under immense pressure," said David Kern, economic advisor to the BCC. The Bank of England is expected to lower interest rates from the current 5.0 percent on Thursday to stimulate the economy amid ongoing turmoil. The Organisation for Economic Co-operation and Development (OECD) and the European Union previously warned that Britain would step into recession this autumn. (H)
