NIESR: UK recession risk 50-50

Even if the Eurozone crisis is resolved, the UK economy faces an almost 50 per cent chance of suffering two consecutive quarters of contraction, according to the National Institute of Economic and Social Research’s (NIESR) forecast out today. If leaders only “muddle through”, the risk rises to 70 per cent, the report said. The think-tank is calling for a further loosening of monetary policy in an effort to boost demand.