Not necessarily to read the following lines
The British economy will shrink by 3.75 % in 2009 and only start to expand latest economic news again in late 2010 , the European Commission said Monday during a bleak assessment of the damage that the financial crisis will cause the United Kingdom. The latest forecast marks a commission of further latest economic news deterioration in the economic outlook in the UK. The Commission's previous forecast for the UK economy , published in January, said that the British economy will contract by 2.8 % in 2009 . The previous economic forecast , said it expects the UK economy to grow 0.2 % in 2010 compared with the current estimate of 0.1 % . latest economic news
The unemployment rate in the UK rose to 10% at the end of 2010 and an average of 9.4 % for 2010 , the commission said . This is an increase from its January forecast average unemployment rate of 8.1 % in 2010 .
The Commission also provides a " significant deterioration " of public finance in the UK , as declining tax revenue and economic stimulus in the UK will increase its budget deficit to 13% of gross domestic product in fiscal year 2009/2010 and 2010/2011 . latest economic news
The fall in the financial sector and the housing market , two very important factors in economic growth in the UK over the last decade , which further reduces government revenue , the commission said . latest economic news
The sharp fall in the pound against other currencies like the euro , has not significantly increased latest economic news British exports through most of 2008 , the import and export volumes remained stable , the commission said . But the pound devalued should help the trade balance in the UK in the future, economic growth increased from 1 % in 2009 latest economic news and 0.25 % in 2010 .
