OECD warns UK on brink of double dip

The OECD has warned the UK is teetering on the edge of a double-dip recession, and has called for further quantitative easing to support the economy.

In its latest Economic Outlook, the Organisation for Economic Co-operation and Development said the UK economy will shrink in the fourth quarter and Q1 2012. The OECD said weak international demand, continued retrenchment among households and needed fiscal consolidation have halted the recovery. It is predicting GDP will contract by 0.1% in Q4 of 2011 and by 0.6% in Q1 of 2012, and has revised its growth forecast for 2012 down from 0.9% to 0.5%. However, the think-tank expects growth of 1.8% in 2013 following a recovery in exports and household consumption. The OECD commended th...