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Britain 'is bound to follow if the US slides into recession' Tamsin Brown & William Lowther / Daily Mail | December 3, 2007 The financial turmoil in the U.S. will have a "serious effect" on Britain's economic growth, a leading economic adviser warns. Britain's financial markets have already been rocked by the fallout from housing problems in the U.S., which many fear will slip into recession next year. A recession in the U.S. is likely to drag growth in Britain down with it. Ruth Lea, of the think-tank the Centre for Policy Studies, said the financial troubles in the U.S. would be felt "in the UK and around the globe". She added: "It will have a very serious effect on the British economy and the British market is beginning to look quite ugly as well." (Article continues below)
The investment bank Goldman Sachs has already said the chances of U.S. falling into a recession have risen to between 40 and 45 per cent. U.S. Treasury Secretary Larry Summers said last week that "the odds now favour a recession" and Mrs Lea said the prospect of such a downturn was "almost inevitable". Dr Nouriel Roubini, an economist at New York University, added to the gloom as he warned of a risk of "generalised meltdown of the financial system of a severity and magnitude like we have never observed before". CLICK ON THE BANNER TO
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