The UK will be in recession by next year

Growth in the UK seems to be holding up pretty well, but all that is likely to change. Jeremy Batstone-Carr looks at the prospects for the UK economy, and finds it rapidly heading for recession.

The long awaited first stab at UK gross domestic product (GDP) over Q1 2008 was released on Friday. Much has been written regarding the continuing crisis in the credit markets and the plight of the US economy, however, recent survey data indicates that whatever the problems in store for the UK over the next twelve months, so far activity appears to be holding up fairly well.

The country's leaders should, however, not be lulled into a false sense of security. The International Monetary Fund (IMF) delivered a particularly hard hitting assessment of prospects and given that the economic imbalances in this country are as severe as in the United States there is no room for complacency.

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