Prospects for continued economic recovery looked a bit bleaker as it emerged that the Treasury borrowed another $4.3 billion last month, the first time Britain has been in the red in January since records began in 1993. Economists had expected a surplus of £2.8 billion in a month that should be bolstered by tax receipts.
The Treasury insisted it is still on course to borrow a total of £178 billion for the financial year, 12.6 percent of GDP, but more pessimistic economists predicted that borrowing could exceed Greece’s deficit of 12.7 percent and that another quarter of negative growth is possible.
Britain’s national debt now stands at £848,500,000,000. More positively for the Government, 60 leading economists have backed Alistair Darling’s decision to delay spending cuts until 2011.
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It’s worth reminding ourselves that the current global economic crisis was not totally unforeseen. Have a look at The Times‘ Money Central October 2008 list of Ten people who predicted the financial meltdown, from Vince Cable and Ron Paul to 1920s Marxist economist Nikolai Kondratiev.
Money Central also listed The 10 biggest winners from the financial crisis.
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