Britain 'already in recession'

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Last Modified: 12 Nov 2008
By: Faisal Islam

With unemployment at an 11-year high and the prospect of economic growth shrinking by as much as 2 per cent, the severity of Britain's recession is made starkly clear.

A gloomy forecast from the Bank of England shows that Britain is probably already in recession and is destined to contract further in 2009.

Interest rates, already at their lowest rate since the 1950s, are set to fall to record lows as inflation possibly goes into negative territory.

Meanwhile, in the US the credit crunch has pushed the American car industry into crisis.