Double-dip recession in Britain unlikely, says poll

BRITAIN’S economic recovery will slow in the second half of the year, but the chances of a double-dip recession remain slim as the central bank keeps rates at a record low, a Reuters poll forecast.

The survey of around 50 economists, taken over the past week, predicted the British economy will grow 0.5% in the third quarter and then between 0.3-0.5% per quarter from there until the end of 2011, little changed from July’s poll.

The country surprised markets with growth of 1.1% in the second quarter, but economists say planned government spending cuts, weak demand from major trading partners and banks’ continuing reluctance to lend will slow the recovery.