UK bottom of the ‘league’

The International Monetary Fund (IMF) expects the UK’s economy to shrink by 2.8% this year – the worst figure since the Great Depression of the 1930s, according to The Guardian.

The world’s ‘advanced economies’ are expected to shrink by an average of 2%, but the UK is expected to fare worse than other countries in this category. Germany is next among these countries, with an expected contraction of 2.5%, and Canada is expected to be least affected, shrinking just 1.2%. The USA is thought to be facing a contraction of 1.6%.

Looking ahead to 2010, the IMF predicts that the advanced economies will grow by an average of 1.1%, with Britain growing by 0.2% and the USA and Canada each growing by 1.6%. Italy and Spain, meanwhile, are expected to continue shrinking slightly in 2010 – by 0.1%.

Such national and international figures may not sound immediately relevant to consumers, who may be more concerned by the recent report from the International Labour Organization, which states that ‘global unemployment in 2009 could increase over 2007 by a range of 18 million to 30 million workers, and more than 50 million if the situation continues to deteriorate’.

“Just about everyone is affected by ‘tough’ times,” said a debt management expert for Gregory Pennington, “but people with debts may be hit particularly hard if their income drops, as they’re committed to servicing their debts as well as paying their essential bills. Anyone in that situation should seek debt advice as soon as possible – the longer they wait, the harder it may be to regain control of their finances.”

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