Britain 'to fall into recession'

Eurozone is going into recession in 2008 because of the high prices of food and fuel prices as well as the credit crunch (+ructions on the market) : slowdown in export and consumer spending.

UK, Germany and Spain are the most concerned, according to the European Comission forecast. It's the first decline of the block since its creation. According to a Treasury spokesman UK could well deal with these challenges (thanks to a high level of employment, low interest rates and rising incomes + many job creations).

The financial crisis in America had repercussions in Europe because of our tight links (especially the UK) in economy. This can have many consequences on the economic growth and so, on the citizens'lives themselves. Indeed, if the economic growth goes down, then, that means that the country or area is less rich and so people's lives are less confortable than before. That means a lakes of confidence, so people buy less, therefore the demand is going down. It seems to be a circle (without being pessimistic) because to relaunch economy, the European Central Bank needs to put interest rates down, and so, demand will go up. But, with the inflation, they have to keep interest rates high to not make inflation more important. However, UK could well deal with the recession because it has good circumstances (high level of employment, low interest rates, rising incomes and many job creations) to make people produce and spend, this will relaunch economic growth.