British economy to face credit squeeze fallout in 2008

0 Comments | AFP, October, 2007

LONDON (AFP) — Britain's economy would grow at a slower than expected rate in 2008 because of the fallout from the global credit squeeze, finance chief Alistair Darling said Tuesday.

Darling, delivering his maiden pre-budget report, told parliament that British economic growth would likely come to 2.0-2.5 percent in 2008.

The Labour government had originally forecast gross domestic product (GDP) growth of between 2.5-3.0 percent for next year.

Darling said his report came at "a time of increased international economic uncertainty and more fragile global environment, which has already seen turbulence in America, Asia and Europe."

He added: "Economic forecasters expect growth next year in America, the euro area and Japan, to fall to 2.0-2.5 percent....