The UK economy is expected to contract by 1.3% in 2012 and is likely to be in recession as we enter the new year, according to respected economists at Standard Chartered bank. Growth of 0.6% had been predicted but Standard Chartered’s latest survey, of 350 companies, points to a sharp recession in the face of the ongoing eurozone crisis. The eurozone economy is expected to contract by 1.5% next year. The bank said that three factors are expected to contribute to the UK falling back into recession: a decline in consumer and business confidence; banks keeping tighter control on credit; and cuts to government budgets across Europe. While the West contracts, slower expansion is expected in Asia, where growth is predicted to fall from 7.3% in 2011 to 6.5% next year. The bank said that the resilience of the East will prevent the world tipping into a global recession and the world economy as a whole is expected to grow 2.2%. Standard Chartered’s chief economist Gerard Lyons said: “It will be a recovery made in the East and felt in the West. If ever one needed to illustrate the shift in the balance of power, this is it.”