Robert Schiller, Professor of Economics at Yale University, and allegedly one of the world’s most influential economists, predicts that the UK faces the prospect of two recessions in quick succession.
Such a double-dip slowdown is called a “W-shaped” recession by economists, where recovery is so fragile that the country will be plunged into another slowdown just as soon as it starts to emerge from the current recession.
Chancellor Alistair Darling dismisses doubts that his Budget forecasts are too optimistic and predicts that the recession will be over by Christmas. However, most UK economists believe that the UK will stagnate until the end of 2010 and that unemployment will continue to rise well after that.
So – when you begin to contemplate Plans and Budgets for your business in 2010, which of these scenarios will you be planning against?