Report: UK economy to remain flat in 2012

4 May 2012

The UK economy will remain flat throughout 2012 before returning to growth next year, a new report has stated.

According to the National Institute of Economic and Social Research's (NIESR) latest financial forecast for Britain, the country remains in danger due to the unprecedented level of "persistent weakness" it continues to display.

"More than four years after the start of the recession, the economy is well over four per cent below its pre-crisis peak," the group noted.

With this in mind, the NIESR predicted that gross domestic product (GDP) will be close to zero this year, but will rise to around two per cent in 2013.

This echoes the view of the Confederation of British Industry, which stated yesterday that factors such as the Olympics will boost the UK economy in the near future.

Last week, the Office for National Statistics revealed the UK is officially back in recession after its GDP contracted by 0.2 per cent on the opening quarter of the year.

By Asim Shah

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