The Bank of England has cut its growth forecast to close to zero from, as the recession intensifies.
The quarterly inflation report indicated no growth for 2012, compared with 2% predicted a year ago.
''We are navigating rough waters and storm clouds continue to roll in from the euro area,'' said Governor Sir Mervyn King.
He said that the future was unpredictable, since no-one could predict what would happen in the eurozone crisis, which would have an impact on the Britain.
''It's a saga that goes on, and on, and on. (The idea) that we have come to the end of it is unrealistic. There's still a long way to go,'' he said.
Meanwhile, the Bank of France predicts the French economy will fall into recession this quarter for the second time in three years.
The Bank estimates that the economy will contract by 0.1% in July - September. It has already predicted a fall of the same level for April to June.
France posted zero growth in the first quarter of the year.
The French economy has been hit by the eurozone debt crisis, which has weakened demand for exports.