We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

Economists forecast bleak year ahead

A poll of economists by FT say this year could rival 2009 in terms of economic weakness

Article comments

This year could rival 2009 for economic weakness as output continues to be hit by the euro zone debt crisis, according to a poll of economists by the Financial Times.

The FT said its survey of 83 economists, including 11 former members of the Bank of England's monetary policy committee, showed that the number of respondents who believed the economic outlook would deteriorate in 2012 was three times those that thought it would improve.

Even if there was a double-dip recession in 2012, however, only a small minority urged chancellor George Osborne to abandon his seven-year austerity plan in favour of stimulating the economy with tax cuts or more public spending, said the newspaper.

"The (Osborne deficit-reduction) plan was a bit bold, but having got the credit for that in (lower government borrowing) rates we should not backtrack now," John Gieve, former Bank of England deputy governor, was quoted in the report as saying.

Only 21 economists agreed with opposition Labour Party shadow chancellor Ed Balls that the austerity measures were "too far and too fast", the newspaper said.

Almost all those expressing an opinion said that the UK outlook would be much worse if the euro collapsed, illustrating their belief that Britain will not be the master of its own economic destiny this year, according to the FT.

Sir Alan Budd, founding chairman of the Office for Budget Responsibility, described the UK's predicament as a "choice between extended misery if the euro survives and catastrophe if it doesn't".



Economists forecast bleak year ahead
Financial Planning

Budget: What business wants

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..

Primark owner ABF appoints second woman to its board

The group posted a 1% rise in operating profits thanks mostly to Primark's successmore ..

Colt to take €175m restructuring hit

Tech services firm to withdraw from 85% of voice carrier contractsmore ..

GSK announces three-way transaction with Novartis

British and Swiss pharmaceutical giants unveil mutual tie-ups, divestments and investmentsmore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Digital streamlining of travel and expense claims [Part II]

Concur shows CFOs how to make life easier when the auditors come knockingmore ..

Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..


* *