Financial worries won''t disappear overnight.
25 September 2009
Debt management plan users wondering when the recession will end may have to wait longer than hoped, it has been suggested.
The London School of Economics claimed that a recovery in gross domestic product will happen soon, but added that it will be a slow process returning to the fiscal conditions witnessed two years ago.
Spokesperson Julius Sen explained the UK is unlikely to see a full recovery until investment activity returns.
He predicted that recovery will be "slow and drawn out", "if we are lucky".
"If not, then we could get a further recession when governments start to cut spending to cut deficits, plus a danger of inflation," Mr Sen warned.
The expert predicted this could cause problems similar to those seen in the 1970s, which brought about tough inflation controls and high levels of unemployment.
His comments come after the CBI economic forecast predicted the UK economy would emerge from recession in 2010.
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