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Bloomberg
The risk of a UK recession is at its highest level in more than a decade, according to the Resolution Foundation.
Using yields on government bonds as a measure, the think tank sees the greatest likelihood of a deep slump since just before the financial crisis.
The decline of the pound, a widening current account deficit, and poor economic growth are also all worrying signs of what’s to come, according to the report “Failing to plan = Planning to fail†released.
Resolution calculates that the past five recessions cost an average of one million jobs in the UK.
The last financial crisis would have been 12 percent worse, equivalent to 8,000 pounds ($10,000) per household, without a strong response from the British government and financial sector.
The UK is far less prepared than in 2008 to deal with the consequences of a recession, the think tank said. The current economic climate has blunted tools such as slashing interest rates, quantitative easing, and cutting value-added tax.