Recession fears in UK after IMF downgrade

Fears of a double-dip recession were fuelled today as the International Monetary Fund (IMF) slashed the UK’s growth forecast and warned the global economy is in a “dangerous new phase”.

The UK will see gross domestic product (GDP) grow 1.1% in 2011, compared with the IMF’s latest World Economic Outlook report in April of 1.7%, and by 1.6% in 2012, compared with 2.3%.