The threat of a double-dip recession is a reality in the United Kingdom.
The country slid back into recession in the first quarter of 2012!
Bloomberg reports that the British economy shrank for
the second straight quarter, marking the first "double-dip" recession,
in which GDP falls before output lost in the previous recession is
recovered, since the mid-70s
Their economy shrank 7.1% in the 2008-2009 recession. The new
decline was caused by falling activity in the construction and
industrial sectors and stagnation in the services sector.
Spain has also gone back into recession,. Other major European countries have yet to report GDP data from
the first quarter of this year.
Optimism about the world economy has been knocked back by more concerns out of Europe. The euro crisis is once gain fronrtand center at the spring meetings of the International Monetary Fund and the World Bank. With Japan, Canada and the United States on a slow, but steady mend. the IMF’s newest World Economic Outlook nudged up expected global growth in 2012 to 3.5%, from 3.3% in January.
However, The Eurozoe is threatening to explode. The hopes generated when over a €1 trillion ($1.3 trillion) in three-year liquidity was provided
to banks has faded. The IMF may have been too sunny in it's forecast.