THE UK ECONOMY will grow by just 1.2 per cent for the whole of 2008 according to an interim assessment of the G7 countries released on Tuesday by the Organisation for Economic Cooperation and Development (OECD).
In June, the French-based think tank had forecasted a 1.8 per cent growth for Britain, while the International Monetary Fund (IMF) predicted an economic growth under 1.4 per cent.
The report says that “in the euro area and its three largest economies, as well as in the United Kingdom, activity is foreseen to remain broadly flat” until the end of the year.
In fact, “based on incoming high-frequency indicators, OECD short-term forecasting models point to weak activity through the end of the year”, it says.
The document justifies this less optimist outlook with the “financial market turmoil, housing market downturns and high commodity prices”, which “continue to bear down on global growth while at the same time evolving rapidly”, it adds.
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