Economy Set to Shrink by One Per Cent Next Year ; Manufacturing Credit Crunch Will Hit Uk 'Very Hard', Forecasts Report in Association with Www.Rbs.Co.Uk

Birmingham Post › October 20, 2008

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Summary

The economy is already in recession and will shrink by 1 per cent next year, forecasters warned today.

The Ernst & Young ITEM club, which uses the Treasury's own model for its prediction, said the credit crunch will hit the UK "very hard" even if recent bank rescues restore calm to the financial system. House prices will be 14 per cent below their 2007 peak by the end of the year and tumble a further 10 per cent in 2009 before stabilising in 2010, it added.

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Economy Set to Shrink by One Per Cent Next Year ; Manufacturing Credit Crunch Will Hit Uk 'Very Hard', Forecasts Report in Association with Www.Rbs.Co.Uk

The gloomy prediction comes as official figures due on Friday are set to show the first ...

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