Decline predicted for British economy

The British economy is facing an uncertain future as the country’s gross domestic product is expected to decline dramatically next year, a group says.

The Center for Economics and Business Research has predicted Britain’s domestic output likely will decline by 2.9 percent in 2009, marking the largest decline for the country since 1946, The Independent reported Saturday.

The 1946 decline has been blamed on demobilization in Britain in the wake of World War II.

But center officials say a 2009 decline will be due to a predicted decline of more than 15 percent in overall business investments in the British economy.

Center economist Ben Read told the British newspaper banks in Britain likely will not make moves in coming year aimed at assisting consumers or those seeking loans, instead focusing on solving their own business woes.

Despite the public declarations by the government that the banks ought to be lending more, it is clear that the primary concern of many of our largest banks is to shore up their balance sheets and, for those on the end of the government bail-outs, to pay back their Treasury paymasters, he said.