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That compares with a 5percentt expected contraction in Europe and a 10percentto15percentcontractionctinn in the United States and Japan.
Osborne found himself under fire after a greater than expected contraction in the British economy – 0.7% – in the second quarter of 2012.
With the US and France having been downgraded by one ratings agency in the past couple of years, another disappointing UK borrowing number and a widely expected contraction in 4Q12 GDP on Friday will intensify the threat of the UK suffering the same fate.
A series of disappointing US figures did much of the damage, with more than half a million private sector jobs lost in May, a fall in mortgage applications last week and a sharper than expected contraction in the US service sector.
South Korea's KOSPI index improved by 1.1%, to 1,116.23, despite the worse than expected contraction in the economy in the fourth quarter.
A steep drop in business inventories was behind a worse than expected contraction in first-quarter U.S. gross domestic product, but stocks began the day with modest gains in New York.
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The company, like most PC manufacturers, is facing the results of reduced demand in 2013 and expected contractions in 2014.
Reflecting the renewed interest in shares, ten-year bonds issued by the Japanese government saw yields rise above 1%, and yields on ten-year German government bonds touched 4.0%, their highest level in two months.Germany's industrial output suffered a sharper than expected contraction of 0.7% in May, bringing industrial-production growth for the 12 months to May to a paltry 0.2%.
Unemployment is rising and more companies expect contraction than growth.
The U.S. dollar faltered partially in response to a higher-than-expected contraction in New York State manufacturing as measured by the Empire State Index (See: Empire State Manufacturing Mayhem), pushing the euro to $1.5484 from Friday's $1.5363.
These projections reflect an expected significant contraction in the first half of this year combined with an anticipated gradual resumption of growth in the second half.
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CEO of Professional Science Editing for Scientists @ prosciediting.com