Recession

The UK is already back in recession and will not see any interest rate rises until at least 2016, according to economic thinktank the Centre for Economics and Business Research (CEBR).

A likely hard landing in China will bring the financial crisis of the past five years to a climax in 2012, a leading City strategist has warned.

Germany's economy shrank by approximately 0.25% in the fourth quarter of last year, raising fears Europe's second largest economy is on the brink of recession.

The eurozone faces a "mild" recession in the first half of next year, restricting full-year economic growth in the region to just 0.1%, according to Ernst & Young.

ECONOMIC OUTLOOK

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.

MPC member Paul Fisher has warned the UK is at risk of another recession, less than two years since the last downturn.

Economist Nouriel Roubini believes the unresolved debt crisis in Europe has resulted in more than a 50% chance of a worldwide recession.

The risk of another UK recession is higher now than in recent months, according to Bank of England policymaker Martin Weale, who expects the economy to contract in the final quarter of 2011.

WEIMAR LESSONS