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Page last updated at 08:03 GMT, Tuesday, 9 October 2012 09:03 UK

Triple-dip UK recession 'expected'

In its World Economic Outlook, the International Monetary Fund (IMF) is forecasting the UK economy is now expected to shrink 0.4 per cent this year.

The global growth forecast has also been cut for the second time since April to 3.3 per cent, from its July estimate of 3.5 per cent.

Martin Beck, UK economist at Capital Economics, told the Today programme's business presenter Simon Jack that "we have been quite pessimistic on prospects for the UK economy for some time now."

He went on to say that the Capitol Economics forecast is "actually even lower that the IMF's forecast" for growth.

When asked whether he was predicting a triple dip recession he said that "we are… we expect the economy to start contracting again in the fourth quarter."

This puts George Osborne in a "difficult position".

"If fiscal austerity is having an even worse effect on the economy than we anticipated then the chancellor will have to think very carefully about whether he wants to proceed with his current plans."

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