The UK Think Tank Says Britain Is At Its Highest Risk Of Recession Since 2007.

According to the financial times, Resolution Foundation, the British think-tank resolution, said Britain was at the highest risk of a recession in 12 years, and there was not enough response. The think tank says that the average economic recession in Britain has occurred every ten years, and the living standard of families has decreased by 2500 and the number of unemployed people is 1 million.

James Smith, research director of Resolution Foundation, said that with the economic downturn and uncertainty over Europe, the UK's economic risk was at its highest level in 2007. Policymakers are unable to prevent the economic downturn, but we can mitigate the impact of the recession through correct policy responses. By the last great recession, it is clear that huge spending will be needed to save the British economy, which will be the new prime minister and the Bank of England.

In recent weeks, economic data in most parts of the United Kingdom and the world have deteriorated, and PMI surveys in manufacturing, construction and service industries have dropped to levels that most companies say are down. The latest official figures predict that the growth rate in the second quarter will fall to 0.5% from the previous quarter's 0.5%.

With the deterioration of the economy, Resolution Foundation has set up a model to help predict the risk of recession. It uses evidence from financial markets from different maturities of government bond yields to assess participants' subjective views on the risk of recession. The model shows that the recent risk has risen to 40%, up from 21% a year ago, and the survey data are higher than those before the recession. According to the previous recession, it can be found that each time is not the same. Although the fundamental problems of many decline come from the global rather than domestic, they all have a significant impact on domestic income or employment.

The 2007-2008 year financial crisis was the most influential and the slowest recovery in Britain after World War II. Some of the results were that the policy had not returned to normal. The low interest rate policy made interest rates at a low level of 0.75%. 435 billion pounds Quantitative Easing (QE) and huge public deficits. The British public debt burden accounted for 80% of national income, two times that before the crisis. It is estimated that if no action was taken during the last recession, Britain would still be unable to return to its output level in 2008.