US recession 'will have immense impact on UK'

News Article - 28 January 2008
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The impact of a US recession or slowdown would be "big" in the UK, an economic adviser has warned.

Roger Bootle of accountancy firm Deloitte told BBC Radio 4's Money Box programme that the UK would not escape unscathed from any slowdown in America..

"Our corporate worlds are linked and we've invested a lot in the American economy, they've invested a lot in us here, executives are on each others boards and you've got the City with a preponderance of American firms," he explained.

Mr Bootle's comments come after the US Federal Reserve cut the base rate by 75 basis points.

The British Chambers of Commerce recently released a report claiming despite weak business growth last quarter, the UK is not facing a full-on recession similar to in the US.

According to the study, areas such as productivity and investment will suffer this year with firms struggling to control costs in the wake of rising inflation, but recovery is achievable.

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