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recession is a period of negative economic growth for 2 consecutive economic quarters. In the post war period UK economic growth has been characterized by the boom and bust economic cycles. A period of growth is followed by high inflationary growth and then a downturn in the economy. However since 1992 the UK has experienced a long period of economic growth, the longest period of uninterrupted growth this century. It appears the UK has temporarily avoided the threat of recession, but although forecasts remain positive there are many factors that could push the UK into recession.

Possible causes of a recession could include:

1. Fall in house prices. The UK economy has a strong dependency on the housing market. Most people own a house, renting is not common like on the continent. Borrowing costs are a high % of income because people take out large mortgages.

If house prices were to fall there would be a negative wealth effect which would adversely affect consumer spending and......

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Approximate Word Count: 598
Approximate Pages: 3 (250 words per double-spaced page)

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