In a recent report released by the Organisation for Economic Cooperation and Development, figures show that the UK has not performed as well as other leading economies around the world with one exception and that is Japan that suffered major losses due to the tsunami.
The OECD is an international think tank that is set to present new questions to George Osborne who has been under fire to do something about the stagnating economy in the UK and his strategies which have thus far been insufficient, according to leading economists. All across the board politicians from his party and the opposition are calling for additional stimulus, mainly in tax cuts. It is felt that further stimulus will help increase momentum for the recovery which has all but stalled.
It is becoming evident that although the UK has underperformed other leading economies, some of those very nations are also experiencing tremendous slowdowns as well. For example, both the United States and the Eurozone have slowed down in their rate of growth as well. In fact, both Germany and the United States only did marginally better than the UK in the previous quarter which is another cause for concern.
Overall, in the past year the UK has indeed been the weakest in recovery efforts but they are now on a par with other world leaders. This is causing growing concern that we may be on the verge of what is being called a ‘double dip recession.’ Just two years after the world pulled out of the last recession it appears as though we may be headed for a new and even more serious global event. Economists for American based Bank of America and JP Morgan state that we are now at about a 40% chance of experiencing this double dip recession and the whole world awaits Ben Bernake’s announcement as to whether or not the US will begin a new round of quantitative easing.
