IMF sounds UK recession warning

Its warning came as it cut estimates for UK growth in 2011 from 1.5% to 1.1%, while 2012's forecast was reduced from 2.3% to 1.6%. The IMF also warned chancellor George Osborne's deficit reduction programme was threatened by weak growth rates. It said in the event of any further downturn Osborne would have no alternative but to ease the pace of his deficit reduction plan. "There is some evidence that drops in equity prices are associated with a greater chance of a new recession in a number of economies," the IMF said. "There is an increased risk of a new recession from the third...