Article: UK economy is likely to shrink 3pc this year; OUTLOOK Gloomy trading forecast amid credit crunch stranglehold.(Business)

Byline: JOHN CRANAGE Industrial Editor

The UK economy could shrink by as much as three per cent this year as the growing recession takes a heavy toll on jobs, manufacturing, exports, the housing market and consumer spending.

That's the gloomy new year prediction from Howard Archer, economic forecaster at IHS Global Insight.

And with the world facing possibly the worst downturn in activity since World War Two, the UK's plight could be even worse, he stressed.

In a wide-ranging analysis of prospects for 2009, Mr Archer claimed the government underestimated the ...

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