Britain slashes growth forecasts amid eurozone 'debt storm'
Britain slashed its growth forecasts on Tuesday and warned it may be hard for the country to avoid a fresh recession amid what finance minister George Osborne called a eurozone "debt storm".
The economy will grow by only 0.7 percent in 2012, sharply down compared with an earlier forecast of 2.5 percent, said Chancellor of the Exchequer Osborne, citing figures from the independent Office for Budget Responsibility.
Britain's OBR forecasts gross domestic product growth of 0.9 percent this year compared with a prior official estimate of 1.7 percent given in March, Osborne added in his autumn statement delivered to parliament.
Osborne warned that if the rest of Europe went into recession, "it may prove hard to avoid one here" but added that "extensive contingency planning" was being carried out to deal with "all the potential outcomes" of the euro crisis.
Although not a member of the eurozone, Britain is a key trading partner of the neighbouring bloc.
© 2011 AFP