The UK Government Office of National Statistics (ONS) has reported the UK’s fastest rate of economic decline in over 50 years of reporting. The statistics show the UK economy shrank by 2.4% in the first 3 months of 2009. Perhaps more worryingly was the comment that these were far worse than expected by ONS who had previously forecasted a 1.9% decline.
Many are now starting to talk about a “double dip” recession, e.g. we will start to come out of recession later in 2009, then we will sink back into recession in 2010. The double dip theory is based on the potential impact of high unemployment which is expected to reach over 3 million in 2010.
No one seems yet to have reported on the regional effects of the projected 3 million unemployment in 2010, clearly there will be some parts of the UK worse hit than others, and no doubt it will be these areas that see the greatest negative impact on property prices.
For details of statistics published by the ONS please visit … http://www.statistics.gov.uk/hub/index.html
