BRITISH RECESSION CONTINUES
The double dip recession may have been avoided but the economic recession is still likely to stay for the next year and the half according to the independent group of predictors
ERNST & YOUNG have advised the Bank of England to add more fuel to the big businesses
They have an opinion that the British Corporations have stock tied up as working capital and now needs some more investment so that their could be more cash inflow to get rid of the stuck up tied working capital
EY says that the economy is likely to grow by 1.5% the following year as compared to a very slim increase of .4% this year
Whereas the other independent body believe that the economy is likely to grow by .8% and 2% ,this year and the next year respectively
Easing procedure and policies are put in place by the Bank of England who is constantly aiming to revive the British economic slump which has been affecting the country for the last three years .The bank of England have been issuing bonds and the interest rates have been kept very low throughout this entire recession period
The another independent group said that the economy recovery is in place and the big businesses are in very good shape as their liquid position is improving steadily.
The economic recovery has taken place in the the US ,but there is some hesitation that has been experience in the UK market as they seem very much risk averse.
Being risk averse means that they are also being a good return averse
There are suggestions to the companies that they should stop stashing cash and should try to take some risk which might result in their favour in case of the better return
The unemployment rate is currently 8.4% which is likely to increase by another one to two percent in the following year