York economist warns of ‘tough 12 months’ ahead
Posted on 21 October 2008
Professor Peter Spencer, of the University’s Department of Economics and Related Studies, who is also chief economic adviser to the Ernst & Young ITEM Club, says the effects of the credit crisis are spreading out from the financial and housing sectors and hitting every part of our domestic economy.
We have to face up to the fact that in the UK and many other countries we are entering a recession
Professor Peter Spencer
He said: "Even if the equity markets stabilise and we begin to see capital flowing around the international banking system again we are still looking at a domestic and global economy that will be in recession for the next 12 months.
"The prompt and coordinated response of Governments worldwide has for the moment put paid to any talk of depression, but we have to face up to the fact that in the UK and many other countries we are entering a recession.
"The next 12 months will be really tough for consumers and corporates, particularly those who have never experienced one before. It’s far too early to be thinking about any recovery."
ENDS