UK’s recession is worse than US and Rest of Europe

The International Monetary Fund (IMF) has warned that UK will suffer longer recession than US and the rest of European countries. IMF is been busy with forecasting the recession in various countries. It came out with a shocking report that United Kingdom will suffer more than other greater countries.

According to the predictions the UK’s economy will contract by 3.8% this year which is definitely much more slump than that predicted by UK government. Many are of the opinion that these predictions are mainly due to the Labour's economic policies.
If these predictions are correct then this could shatter Labour's chances of winning a fourth consecutive term in office. However IMF will not officially disclose these data until April but unofficially they were released by Teresa Ter-Minassian, an adviser to IMF managing director Dominique Strauss-Kahn.

The survey estimates that the US economy will be shrink by 2.6% and Eurozone that comprises of major European countries may go down by 3.5% . According to these reports and predictions Japan’s economy will be the worst hit as it may suffer till 5% of their economy.

Analysts said the grim figures reinforce fears that the grinding economic crisis will send unemployment above 3 million within two years. Unemployment has been rising steadily since January 2008, with the pace increasing as retailers, manufacturers and banks all suffering from the downturn. There are now 10 jobseekers chasing every vacancy, putting pressure on job centers around the country.