Ongoing issues in eurozone is making a double-dip recession in the UK much more likely

The quarterly UK inflation report that was revealed last month shows a greater chance of the economy experiencing negative growth in the first three quarters of 2012.  Ongoing issues in the eurozone and smaller household spending power is contributing to these forecasts.

In November it was reported that unemployment is at it's highest level since 1995.  

Bank of England Governor, Mervyn King has predicted that inflation is likely to drop and possibly hit the Government's target of 2% by the end of June.  The Bank are also forecasting that growth of no more that 1% will be experienced in 2011 and 2012 - this is deemed as optimistic by Vicky Redwood who is the chief UK economist at Capital Economics.

Mervyn King went on to predict that although growth will slow in the economy over the next few quarters he would then anticipate the economy picking up - once adjustments are made in the eurozone area, the UK economy will begin to flourish.

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