Central banks across the world have issued a warning that the British economy is headed towards a relapse into another recession. The indicators are palpably threatening and will most likely endanger a sustained recovery. Bank lending is still in dry spell. The Bank of England confirms that the country’s banks and other financial institutions still make sure that they lend only to secure businesses and home buyers. The Bank of England admits that a rise in public borrowing will surely shoot interest rates up, causing inflation.

That Britain remains ‘deep’ in recession and facing a ‘bleak short-term outlook’ was declared by the Organization for Economic Cooperation and Development (OECD). This organization should be an authority at making prognosis as it is composed of the 30 richest countries in the world.

The OECD blames the ‘inequality of educational achievement’ in the UK as the culprit behind the country’s endangered economy. This educational disparity has sunk Britain to the bottom of the list of most advanced economies because it hinders social mobility. Fact remains that those with education and skills are better able to move the economy. Unfortunately, international standard testing results reveal that the UK is significantly behind those countries that perform economically better.

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Via The Independent