Economy 'no longer in free fall'
The chancellor is expected to revise his economic forecasts in the Budget. The economy is no longer in free fall and a recovery next spring is likely, a renowned economic think tank has said. Stabilising markets and the easing of credit conditions may well mean that the worst of the recession is over, The Ernst & Young Item Club said. It is forecasting the economy to shrink by 3.5% this year and by 0.1% in 2010.
But if you think everything is turning rosy read on to see what Peter Spencer, chief economic adviser to the Item Club has to say:
"We face another 12 to 18 months of serious grief. Around 900,000 jobs will be lost this year and half a million next," he said. He also predicted a gloomy next 12 months for the housing market and the high street. World trade is expected to decline by 9% in 2009, he added.
Still, if you work for the Beeb or the la-la land that is the government with guaranteed income for the next 2 years, you will believe all this.
3 comments:
All this spinning on the Budget is making my head turn. Luckily, I have just posted my own Budget for 2009-2010. If you think that Darling is in a mess, you ought to see mine. Of course, he has his mates will be OK at the end, but me and mine are busted.
"We are not into bailing out the past, but removing the barriers to investing in the future"
A Darling
"We are not into bailing out the past, but removing the barriers to investing in the future"
A Darling
This from the man who will be announcing £60 billion of bail outs for the banks in this country.
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