~ The Milky Way ~

A General entertainments forum like no other, with a whole range of different subjects... we make it fun for you & all ages are welcome!!
 
HomePortalFAQSearchMemberlistUsergroupsRegisterLog in

Share | 
 

 Swine Flu Could Devastate British Economy

View previous topic View next topic Go down 
AuthorMessage
Ian Babe
Admin
Admin
avatar

Posts : 16
Join date : 2009-07-19
Age : 26
Location : UK, York.

PostSubject: Swine Flu Could Devastate British Economy   Mon Jul 20, 2009 9:38 am

GDP could shrink an additional 3% in 2009 due to swine flu, warns a prominent think tank


LONDON -- Just as the British economy was slowly beginning to recover, a new foe has emerged. Swine flu could cause Britain's economy to shrink by a gigantic 7.5% this year and dash hopes of recovery next year.

"If the worst case scenarios of the threat of swine flu are fully realized, gross domestic product could fall by as much as an additional 3% this year and another 1.7% in 2010,” said Peter Spencer, chief economic advisor to the Ernst & Young Item Club, a London-based think tank.

“Our recovery will really only begin when world trade starts to recover, and we should see output beginning to grow next year just as long as the U.K. economy doesn’t catch a severe case of H1N1," he added.

The worst case scenario means a 50% infection rate. In this case, swine flu could leave businesses without employees, consumers spending less on goods, and transport and tourism impacted as people stay away from public places to avoid infection, Hetal Mehta, Senior Economic Advisor to the Ernst & Young said.

Another think tank, Oxford Economics, believes British GDP could shrink as much as 5% in total this year, thanks to the pandemic. In early July, the International Monetary Fund said it expects the economy to contract 4.2% this year but grow by 0.2% in 2010.

So far 29 deaths have been linked to swine flu and 53 patients are in intensive care, according to datat from local health authorities in Britain.

"I can't help to feel [the report] is a little on the pessimistic side. But the economy is so fragile that it is particularly vulnerable to any shock," said Howard Archer, chief U.K. economist at IHS Global Insight in London. "We are expecting next year to be a bumpy ride for the economy, between modest growth and modest contractions until the second quarter of 2010, when we expect a recovery."

Separately, Goldman Sachs ( GS - news - people ) said in a note to investors on Monday that Britain's economy risk of a "double-dip recession" was still "significant". The note said that any pick-up in demand is likely to be "extremely weak" due to high levels of unemployment and fading government stimulus packages.

_________________
R.I.P - Michael Jackson - King Of Pop - Always Remembered & Never Forgotten!
Back to top Go down
View user profile http://milkyway.niceboard.biz
 
Swine Flu Could Devastate British Economy
View previous topic View next topic Back to top 
Page 1 of 1
 Similar topics
-
» Gigi British
» Conroy Maddox - last of the British surrealists
» Ultracast British Empire Munition Boxes B166
» Your All Time Favourite Comic: a Poll (category 8: British Newspaper Strips part 1)
» The truth about our economy in 2 minutes

Permissions in this forum:You cannot reply to topics in this forum
~ The Milky Way ~ :: The Milky Way :: Local/Worldwide News-
Jump to: