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Recession set to hit London hardest in the UK

London is forecast to be the worst affected part of the UK as the economy enters into one of its toughest years since the Second World War.

The Centre for Economics and Business Research regional prospects report finds London, with its disproportionately high reliance on financial and business services, will be particularly affected.

While the downturn will not spare any of the regions, CEBR now forecasts that GVA growth in the capital will decline by a staggering 3.4 per cent in 2009, making it the worst performing region in the UK in 2009.

There will be an estimated 147,443 job losses in 2009 according to the cebr.

Northern Ireland and Wales, on the other hand, long time at the bottom of the league table, will move to the top of the ranking.

Yet, with economic output in Northern Ireland and Wales still contracting by 2.4 per cent in 2009 there will be little cause for celebration.

CEBR managing director Mark Pragnell said: “The public sector will be the only growth industry in 2009.

“While this means that some of the regions will be somewhat cushioned from the worst of the economic downturn, this will not save them from a major recession over the next year.”