2 MORE YEARS OF CRUNCH

THE Bank of England will this week SHATTER Alistair Darling's predictions of a quick economic recovery.

In a major snub to the Chancellor, boffins at the Bank will DOWNGRADE their growth forecasts in their Inflation Report on Wednesday.

They will say the economy will shrink by more than four per cent in 2009-not the 3.5 per cent that Mr Darling predicted in his Budget.

And many experts are now warning Britain faces at least another TWO YEARS of credit crunch misery, despite the Chancellor claiming a return to growth by the beginning of 2010.

Gloomy

Vicky Redwood, of Capital Economics, said: "The economy will take two to three years to get back on track. The recession won't end until the end of next year and we won't return to significant growth until 2011."

A Bank of England spokesman also painted a gloomy picture. He told us: "The world economy remains in deep recession.

"Output has continued to contract and international trade has fallen precipitously. The global banking and financial system remains fragile."

The Bank's grim news will blow an even bigger hole in public finances, forcing the Government to borrow even more cash as tax receipts dive.

But there are a few rays of hope for the embarrassed Chancellor.

Figures out on Tuesday will show the stomach-churning decline in UK MANUFACTURING has slowed, with output dropping by only 0.9 per cent in March. Mr Darling (right) will cling to more slim pickings due out on Tuesday.

A survey by the Royal Institute of Chartered Surveyors will reveal HOMEBUYER enquiries picked up in April after months in the doldrums.

Struggling SHOPS also got a boost, with news of a 1.5 per cent rise in sales in April. But the JOBS market is still in crisis, with rocketing redundancies. Unemployment has hit a grim 2.17m, data from the Office of National Statistics will show on Wednesday.

It means an extra 2,222 people joined the dole queue EVERY DAY in the three months to March.

And a staggering 4.8 per cent of people were on the dole in April-the highest level since

Labour came to power in 1997.

Even those lucky enough to have a job are suffering. Figures out this week will show the average wage-packet is down by 1.5 per cent.

• 10m Brits out of work
• Britain's still not working

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