From the TUC

Web links for 13th December 2011

13 Dec 2011, by in Web links

  • Standard Chartered’s “Global Focus” is pretty gloomy about the advanced economies. Its page on the UK (p. 37) says: “The UK economy is likely to be in recession going into 2012 as the negative impact of fiscal tightening and falling real incomes is compounded by a downturn in demand from the UK‟s largest trading partner, the euro area. We expect GDP to contract in H1-2012, before bottoming out and eventually recovering in H2-2012.”
    They’re pretty bearish about the impact of austerity: “The government is implementing tax hikes, cutting allowances and reducing expenditure … As a result, public-sector wages are declining in real terms and jobs are being lost. The private sector has not been compensating for rising unemployment in the public sector, and real wages are shrinking there, too. Government cutbacks are having an impact on private-sector contracts, and the capital spending budget has been particularly hard hit.”