While there is no doubt that countries across the world are feeling the heat of financial crunch, a recent report by the Paris-based thinktank, the OECD, has claimed that there are fair chances that the UK would not be able to recover from the crunch time. The report claimed that the first half of this year is going to be a lot crucial for the UK as it may prove out to be slowest among the world's largest economies.

The report claimed that the UK output had reduced by 1.2% in the final quarter of 2011, and the first three months of 2011 are going to bring the decline of as much as 0.4%. While Germany and France are expected to move a bit ahead of others initially, they would not be able to sustain the same momentum by the end of this year.

Adding more worries is another report by the Office for National Statistics which claimed that there was a considerable drop in the output in the final three months of 2011 as compared to the estimated value, thereby indicating that the UK economy is going through a lean phase, and recovery seems no where closer.

With Consumer and business confidence surveys adding more gloom to the current economic environment, it would be worth seeing how the UK government would cope with the tough time ahead.