FXstreet.com (Barcelona) - How bad can the situation in the United Kingdom get? Months ago, the IMF Forecasted the European country would suffer the worst recession of the major industrialized nations through 2009.
Consumer spending data released today added further weight to this outlook. Through the month of February, retail sales reportedly fell 1.9 percent on the month while receipts grew at a feeble 0.4 percent pace over the year - the worst level of activity since 1995.
This is just one more piece of data that has added to the growing political strain in the United Kingdom. Leveraging yet another weight on Prime Minister Gordon Brown's shoulders, Chancellor of the Exchequer Alistair Darling suggested today in testimony that he would be putting limits on further rounds of fiscal stimulus.
Brown, along with US President Barrack Obama, has lobbied the world's largest governments to increase spending to recharge growth. Until they do, the recovery of the global economy will depend on the actions of a few of the largest players - a situation that could end in crippling failure, said Terri Belkas, analyst at FXCM.