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OECD’s predictions for 2013

Thursday, December 27th, 2012

The OECD is predicting that the Euro zone crisis and deficit reduction efforts will hinder the UK economy and result in contraction and continued recession.
According to the Paris-based think tank, the paying down of consumer debt was also limiting growth. The expectation is that UK output will shrink by .3% – .4% for 2012.

While the job market remains tight and unemployment relatively high, growth is expected to recover within a 12-month window, which would put the first signs of recovery in early 2014. These projections are based upon several assumptions, among them that the debt crisis can be miraculously resolved, that global markets and consumption will resume their rise, that there is no tsunami of inflation due to the indiscriminate increase in the money supply resulting in a Weimar-style destruction of wealth and purchasing power, and that no costly disasters from climate change or ecocide strike.

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