The UK is feeling the effects of a global slowdown,
according to research by PriceWaterhouseCoopers.
Growth in the UK economy will fall to 2 per cent this year compared
to 3 per cent last year.
A fall in global equity prices is also responsible for the
UK slowdown, which is expected to cut business investment and reduce consumer
spending.
The foot and mouth crisis and a slump in the technology
sector have also contributed to the UK economy’s problems.
Economists at PriceWaterhouseCoopers warn there could be further
interest rate cuts later this year.
Rosemary Radcliffe, chief economist of PwC, said, “The UK is
feeling the effect of the international slowdown. A further interest rate cut
could be needed later this year if there is any further deterioration in the
international economic environment.”
The UK’s GDP could fall by 1 per cent this year, with
manufacturers being the hardest hit.
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