George Soros: Austerity Measures Will Send UK Into Recession


George Soros believes the new round of austerity measures the UK’s coalition government is about put in place will send the economy back into recession, according to The Telegraph.

“I don’t think they can be implemented without pushing the economy into a recession,” he said.

The comments come just a few days after the UK announced Q4 2010 GDP of negative 0.5%, well below expectations of 0.5% growth.

Yesterday, in Prime Minister’s Questions, Labour leader Ed Miliband questioned how the cuts would be able to create jobs and grow the UK economy in the wake of the disappointing GDP number.

Nouriel Roubini too doubts the logic of the cuts now, saying there was the chance of stagnation and double-dip recession remains, according to the FT.

The government, however, intends to go through with its austerity cuts, with Deputy Prime Minister Nick Clegg set to defend them in Davos today.

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