Wealth management expert: Double-dip recession is unlikely

A wealth management research body has described the possibility of a double-dip recession as "unlikely", saying the probability of it befalling Britain is no greater than one in five.

Andrew Goodwin, senior economic advisor to the Ernst & Young ITEM Club, notes businesses "remain firmly in expansionary territory", meaning a second economic slowdown of significant proportions is doubtful.

Other wealth management experts may welcome the news, which could mean corporate banks are able to relax lending criteria and credit will become more easily available.

In a recent report the group argued high energy prices and increases in VAT would maintain the consumer price index above target for the next year and a half, but predicts it will then reduce to "well below" two per cent.

Mr Goodwin argues while continued growth at the pace seen during the first half of 2010 is unrealistic, a slide back into recession should not happen unless the country is subject to an unforeseen external shock.  ADNFCR-2318-ID-800037512-ADNFCR