View more on these topics

BUDGET 2009 NEWS: UK economy set for 3.5% fall in 2009

Chancellor Alistair Darling has revealed the UK GDP fell by 1.6% per cent in the first quarter of 2009 and predicts the economy will contract by 3.5% at the end of 2009.

Darling also predicted that GDP would rise to 1.25 per cent in 2010 and then up to 3.5 per cent in 2011.

The Chancellor admitted that national debt for this year will total 59 per cent of GDP, 3.5 per cent of which came from the bailout of the failed banks. he said the country will borrow £175bn this year as a result, or 12.4 per cent of GDP. Darling predicts the national debt will begin to fall by 2015.

Darling said: “Because of the underlying strength of our economy growth should resume by the end of the year.

“There are no quick fixes, there are no overnight solutions but we must make sure we deliver. We need a clear path of recovery in the UK.”

Recommended

Seeing red

Is the FSA’s aim to get rid of independent financial advisers? When you consider the sheer weight of regulation imposed on IFAs, it is enough to make you think that the FSA is out to get us. Just consider some of the main proposals – the retail distribution review, treating customers fairly and the latest proposals for capital adequacy.

OPM in recovery mode

Multi-manager OPM believes its core and satellite approach to portfolio management should ensure that it does not miss the first signs of a recovery in equity markets.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com