Britain still at risk of a double –dip
On Tuesday 26th January 2010, the Office for National Statistics (ONS) announced that the UK economy had grown 0.1% in the final quarter of 2009. Britain had been in recession for 18 months, and today’s news may be good news. This is an initial estimate and could be revised upwards or even downwards. This could show the UK could be at risk of a double-dip.
Even though Britain grew in Q4 of 2009, it may not be the end of the misery. The likelihood of a double-dip is predicted by KPMG. Even if Britain shows a revised negative growth in Q4 of 2009, or if there is a double-dip in 2010, I think that the UK will be back on the road to recovery within the calendar year.
This economic downturn should teach lessons to all industries, but especially banks. I think bank’s decision making and risk management will improve and prevent another recession in the near future.
Therefore, the results announced today may not mean good news as there is a risk of a double-dip. However, I feel the future will be more secure when we pull ourselves out of it!
Below is the link to the Accountancy Age article on this subject:
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