Professor Peter Spencer, Chief Economic Advisor, ITEM Club
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UK economy fears 'exaggerated'

The UK recovery is losing momentum and will slow over the winter but chances of a double-dip recession has been "exaggerated", say forecasters.

Gross domestic product (GDP) will grow 1.4% this year and 2.2% in 2011, the Ernst & Young ITEM Club predicted.

But the economic forecasting group added the recovery would face a "soft patch" in the coming months.

The report comes ahead of the government Spending Review which many fear will stunt the economy.

One of the report authors, Professor Peter Spencer, told the BBC he agrees with the business leaders who on Monday wrote to the Chancellor backing the proposed cuts.

  • 18 Oct 2010