The UK is predicted to sink further into the red than any other major developed country next year, according to the Organisation for Economic Co-operation and Development (OECD).
The fiscal deficit is expected to rise to 14 per cent of economic output in 2010, compared to an average of 8.75 per cent in the 30 most developed markets, it says in a report.
The OECD warned that "public finances have deteriorated sharply" since the beginning of the recession and called on the UK to continue to develop "a strong and credible" framework for reducing the ratio of debt to output.The report said the downturn in economic activity had pushed up unemployment and reduced wage growth inflation. And still they open the gates...
"To improve stability, the government should continue to develop a concrete and comprehensive plan to ensure that debt is on a declining path once recovery takes hold," the OECD said.
The organisation said the state of the UK's balance sheet meant the possibility of extra stimulus to the economy was curtailed.
Ireland, the US and Spain are all expected to have fiscal deficits above the average figure next year, the report said.
It also said the UK economy was likely to recover "only mildly" in 2010, with any return to health dependent on an upturn in the housing market and credit availability.
The report said the downturn in economic activity had pushed up unemployment and reduced wage growth inflation.
It predicted that UK unemployment, which currently stands at a 12-year high of more than 2.2 million, will "rise substantially" and "labour market conditions will remain unfavourable for a long period".
"While labour market flexibility remains relatively high in the United Kingdom, policies to help the unemployed remain employable should remain a priority," it said. continues here
The fiscal deficit is expected to rise to 14 per cent of economic output in 2010, compared to an average of 8.75 per cent in the 30 most developed markets, it says in a report.
The OECD warned that "public finances have deteriorated sharply" since the beginning of the recession and called on the UK to continue to develop "a strong and credible" framework for reducing the ratio of debt to output.The report said the downturn in economic activity had pushed up unemployment and reduced wage growth inflation. And still they open the gates...
"To improve stability, the government should continue to develop a concrete and comprehensive plan to ensure that debt is on a declining path once recovery takes hold," the OECD said.
The organisation said the state of the UK's balance sheet meant the possibility of extra stimulus to the economy was curtailed.
Ireland, the US and Spain are all expected to have fiscal deficits above the average figure next year, the report said.
It also said the UK economy was likely to recover "only mildly" in 2010, with any return to health dependent on an upturn in the housing market and credit availability.
The report said the downturn in economic activity had pushed up unemployment and reduced wage growth inflation.
It predicted that UK unemployment, which currently stands at a 12-year high of more than 2.2 million, will "rise substantially" and "labour market conditions will remain unfavourable for a long period".
"While labour market flexibility remains relatively high in the United Kingdom, policies to help the unemployed remain employable should remain a priority," it said. continues here
![Churchill, Hitler and the Unnecessary War](http://patbuchananbooks.com/wp-content/uploads/bk-pjb-chuw165.jpg "Churchill_Hitler_the_Unnecessary_War\")
Post a comment on AAWR
0 Responses to "UK to sink further into red than any major country, warns OECD"Post a Comment
We welcome contributions from all sides of the debate, at AAWR comment is free, AAWR may edit and/or delete your comments if abusive, threatening, illegal or libellous according to our understanding of, no emails will be published. Your comments may be published on other nationalist media sites worldwide.