UK economy at highest risk of recession since 2007 crash

Resolution Foundation warns Britain can do little to evade a recession, and is ill-equipped to protect itself in the event of one

Automobiles create light trials as they pass the Bank of England (BOE), center, at dawn in the City of London, U.K., on Monday, Feb. 25, 2019. The U.K. and U.S. sought to allay fears of disru
(Image credit: © 2019 Bloomberg Finance LP)

The British economy is at its highest risk of recession in over a decade, and needs active policy in an attempt to prevent a downturn, and, crucially, to mitigate damage in the event of one, a new report from the Resolution Foundation has found.

The report brings attention to the declining pound, an expanding deficit, uncertainty over Brexit, and poor domestic and international growth - plus the fact that UK recessions tend to happen on average every ten years - as factors that indicate a recession could be due “in the next few years”.

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William Gritten

William Gritten is a London-born, New York-based strategist and writer focusing on politics and international affairs.