The Only Way Is Up
Could there possibly be a few green shoots lurking around the corner. This indeed would be the first piece of good news after a year that broke all records for all the wrong reasons.
This has been the deepest recession of the post-war era, the longest and most difficult downturn since records began. However, unlike a year ago there could well be some green shoots beginning to appear.
Commenting Gerald Irwin of Sutton Coldfield-based Licensed Insolvency Practitioners and Business Advisers, Irwin Insolvency said, “The economy is unlikely to get up to full speed for a while given the losses still sitting on the books of some of the UK banks and the difficulties businesses are experiencing obtaining credit. There is certainly room for some optimism but there are also some risks. For instance, the private sector could prove too weak to continue to stand on its own feet and a fresh round of banking problems could beset the financial sector highlighting the possibility of economic problems ahead”.
Despite next year being an election year, there is every reason to believe that the policy environment will remain relatively benign with the likelihood that interest rates will stay as they are for the time being. However tax increases and cuts in public spending are still likely to bite hard. Reasonable levels of growth over the coming months will mean that some fears have been partly banished, at least for the time being.