The global economic slowdown is starting to bite into the performance of UK
businesses, according to PriceWaterhouse- Coopers.
It predicts that growth in the UK economy will fall to 2 per cent this year
compared with 3 per cent in 2000. PwC also blames the foot-and-mouth crisis,
the slump in the IT sector and the fall in global equity prices for the
slowdown. The report predicts that UK growth will rise to 2.25 per cent in
2002.
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."
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But Sudir Junankar, associate director for economics at the CBI, said,
"The forecast of about 2 per cent growth this year is in line with our own
predictions, but we expect it to be about 2.7 per cent next year with increased
consumer spending."
