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Risk that flu outbreak could tip 'stretched' UK into deflation
JICWyllie
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7-17-2009 1:19 PM
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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/fe6deee0-b8c5-4c57-985b-e24c115f8862/5E81C874-0463-49EF-858C-E4310007BB47/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.independent.co.uk/news/uk/home-news/risk-that-flu-outbreak-could-tip-stretched-uk-into-deflation-1750807.html" href="http://www.independent.co.uk/news/uk/home-news/risk-that-flu-outbreak-could-tip-stretched-uk-into-deflation-1750807.html" style="font-size: 11px;">www.independent.co.uk</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.independent.co.uk/news/uk/home-news/risk-that-flu-outbreak-could-tip-stretched-uk-into-deflation-1750807.html"><P class="font-null"> Swine flu could tip the UK into deflation and see gross domestic product (GDP) plummet by 5 per cent as panicked consumers stay at home to avoid infection, a report said today. </P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.independent.co.uk/news/uk/home-news/risk-that-flu-outbreak-could-tip-stretched-uk-into-deflation-1750807.html"><P class="font-null"> As workers fall ill and take time off work businesses will struggle to maintain productivity, and those who escape infection will find it difficult to get to the office as staff shortages hit the transport network, the report by economic forecaster Oxford Economics said. </P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.independent.co.uk/news/uk/home-news/risk-that-flu-outbreak-could-tip-stretched-uk-into-deflation-1750807.html"><P class="font-null"> The firm has based its forecast on the effect of the Sars outbreak in 2003 on the Asian economy, which hit leisure spending and caused a collapse in travel to affected countries. </P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.independent.co.uk/news/uk/home-news/risk-that-flu-outbreak-could-tip-stretched-uk-into-deflation-1750807.html"><P class="font-null"> But it warned that the current recession will mean that the UK economy will not bounce back as the Asian markets did and it could take up to four years to recover. </P></blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.independent.co.uk/news/uk/home-news/risk-that-flu-outbreak-could-tip-stretched-uk-into-deflation-1750807.html">The fact that UK households' balance sheets are more stretched than in many other countries makes the risk of deflationary dynamics larger than elsewhere.</blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;"> </td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/5E81C874-0463-49EF-858C-E4310007BB47/blog/" title="blog or email this clip"><img src="http://content8.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>
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