Double-dip recession looks 'increasingly unlikely'

A double-dip recession looks increasingly unlikely, according to the senior economic advisor to the Ernst & Young ITEM Club.

Andrew Goodwin said that although the economy may not achieve the 1.2 per cent growth witnessed during quarter two again this year, there is little prospect of further contraction.

He said there is as low as a 20 per cent chance of the economy dipping into recession once again, following three successive quarterly rises in gross domestic product.

The comments may come as encouragement to savers hoping to see upward movement on savings interest rates in the coming months.

With the Bank of England keeping its base rate at 0.5 per cent since March 2009, savers have struggled to generate an income on their cash savings.

And with the Bank unlikely to commit to a rise until the economic recovery is secure, increased market confidence from the well-respected Ernst & Young ITEM Club is a positive sign.

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2010-08-24 12:16:23 © Moneyextra.com