Global crisis cuts value of Kenya’s exports to the UK

Nonetheless, the EC says there could be a glimmer of hope as employment is expected to rise in the UK in 2011 and earnings growth to recover. “Somewhat, disposable income would then rise again in both nominal and real terms.

Household spending growth will be tempered by a number of factors over the forecast period, notably households’ desire to increase savings in response to a higher risk of unemployment and the sizeable falls in households’ net wealth brought about by sharp asset price falls since the onset of the crisis,” the forecast says.