Economists forecast gloom
A survey of 83 economists in the FT predicts that 2012 will rival 2009 for economic weakness as output is hit by the continuing debt crisis in the eurozone. Only a small number are, however, urging George Osborne to abandon his current austerity plans. Meanwhile, a Deloitte survey of the UK’s biggest companies’ CFOs has found that there is a belief that there is a one in three chance of at least one country leaving the euro this year. The survey also found that half of finance directors now expect a recession – more than double a year ago. Their concerns are driven by the possible break-up of the euro and the resulting effects on the UK economy.
The finance directors said their priorities for 2012 were reducing costs and increasing cash flow. Roger Bootle in the Telegraph predicts that unemployment could easily be above three million by this time next year. RCapital, the restructuring consultancy, is the latest organisation to predict carnage on the High Street, saying that insolvencies will outstrip 2008 levels.
Source: BBC News Website
Posted on 03 Jan 2012