UK Faces 'The Great Squeeze'

Monday, 2 November 2009 , Posted by Phil Mitchell at 14:37

The UK is about to face “the great squeeze” according to leading economist Roger Bootle as he talks about this in the latest issue of Deloitte’s Economic Review. He predicts public credit to increase about 15% GDP. In the UK public debt is currently heading towards 100% GDP.

This is bad news for Britain as Mr Bootle, former chief economist at HSBC puts it when he states that the UK's public finances are “in the worst shape for at least half a century”.

This will limit public spending which will effect employment and income. This in turn will make it a more difficult and longer road to economic recovery in the UK.

There is one good thing amongst all this bad news, exporters can now take advantage and benefit from the lower pound.