The UK’s economic outlook has worsened and the economy could stagnate until the middle of next year, the governor of the Bank of England has said.

Sir Mervyn King also said that the eurozone debt crisis was the “single biggest risk” to the UK.

The Bank has cut its 2011 and 2012 growth predictions to about 1%.

It came as the UK unemployment total rose by 129,000 in the three months to September to 2.62 million, with youth unemployment above one million.

The unemployment total was the largest since 1994, and the unemployment rate rose to 8.3%, the highest since 1996.

via BBC News – Bank of England sees ‘worsened’ economic outlook.