Wandering China

An East/West pulse of China's fourth rise from down under.

UK economy ‘to face bigger downturn’ [BBC]


While European economies are expected to contract next year, Stanchart predicts the world economy as a whole would grow by 2.2% next year.

They point toward an indicative shift in the status quo: “It will be a recovery made in the East and felt in the West. If ever one needed to illustrate the shift in the balance of power, this is it.” – Chief economist at Standard Chartered Gerard Lyons.

– – –

UK economy ‘to face bigger downturn’
Source – BBC, published December 12, 2011

The UK economy is to contract by more than previously thought, according to a leading forecaster.

Economists at Standard Chartered bank said the economy will contract by 1.3% in 2012, having previously predicted growth of 0.6% for next year.

The eurozone economy will perform even worse, the bank forecast, contracting by 1.5%.

Meanwhile, the OECD economic think tank has predicted a slowdown for every major global economy in 2012.

The Organisation for Economic Co-operation and Development’s December analysis of leading economic indicators suggested growth levels in the UK and the eurozone would fall below their long-term average.

Different forecasts
However, Standard Chartered’s forecast for a contraction in the economy during 2012 is worse than most economists have predicted.

The Office for Budget Responsibility has said it expects the UK economy to grow by 0.9% in 2012.

And a survey of economic forecasts in November, carried out by the Treasury, suggested growth of between -0.4% and 2.3%.

However Standard Chartered said that “the mounting crisis” in advanced economies, especially the eurozone, has forced it to revise down its own forecasts.

“We think there will be a triple shock to the European economy,” said Standard Chartered economist Thomas Costerg.

“[The] first being a confidence crisis, consumers spend less, businesses invest less. The second is that banks are tightening credit owing to the credit squeeze and the third is national governments tightening budgets all over Europe,” he explained.

“It will be a recovery made in the East and felt in the West” – Gerard Lyons, Standard Chartered

These shocks will cause a recession, not just in the eurozone but also in the UK, he explained.

Asian growth
However, while it expects European economies to contract, the bank predicted the world economy as a whole would grow by 2.2% next year.

The bank said that growth in Asia, where it does much of its business, would slow to 6.5% in 2012 from 7.3% in 2011, but would still be sufficient to enable the global economy to recover towards the end of the year.

“It will be a recovery made in the East and felt in the West. If ever one needed to illustrate the shift in the balance of power, this is it,” said chief economist Gerard Lyons.

Advertisements

Filed under: BBC, Beijing Consensus, Chinese Model, Economics, Finance, Media, Soft Power, Trade

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 2,575 other followers

East/West headlines of Rising China

East/West headlines of Rising China

About Wandering China

Click to find out more about this project

Support //WC

Support Wandering China now - buy a Tee Shirt!

Be a champ - Support Wandering China - buy a Tee Shirt!

The East Wind Wave

China in images and infographics, by Wandering China

China in images and Infographics, by Wandering China

Wandering China: Facing west

Please click to access video

Travels in China's northwest and southwest

Wandering Taiwan

Wandering Taiwan: reflections of my travels in the democratic Republic of China

Wandering China, Resounding Deng Slideshow

Click here to view the Wandering China, Resounding Deng Slideshow

Slideshow reflection on Deng Xiaoping's UN General Assembly speech in 1974. Based on photos of my travels in China 2011.

East Asia Geographic Timelapse

Click here to view the East Asia Geographic Timelapse

A collaboration with my brother: Comparing East Asia's rural and urban landscapes through time-lapse photography.

Wandering Planets

Creative Commons License
Wandering China by Bob Tan is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.
Based on a work at Wanderingchina.org. Thank you for visiting //
web stats

Flag Counter

free counters
Online Marketing
Add blog to our directory.
%d bloggers like this: