28-01-2008
Report highlights risk of recession
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
A new report has highlighted the risk of the UK entering into a recession over the next 24 months.
Released by Deloitte and dubbed the Deloitte Economic Review, the report also warns that the UK's economic performance is set to be at its weakest, in terms of growth, for the last 15 years. Deloitte's report also cautions that the economic downturn could induce employers to shed staff at a higher rate.
"The global financial crisis and the associated credit crunch have brought an end to the period of easy credit that in recent years has been the bedrock of rapid rises in house prices," said Roger Bootle, economic adviser for Deloitte.
Moreover, the Deloitte Economic Review also warns that the UK's housing market will see price falls of approximately five per cent. In 2009, Mr Bootle believes house prices will fall further, with decreases at a rate of eight per cent.
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