“2009 was the worst year in British economy since 1921” is the verdict of Evan Davis, the BBC’s former Economics editor, presenter of Radio 4’s Today programme, and that bloke off Dragon’s Den. In a speech made at my school last week, Davis talked at great lengths of the contributing factors to the recession.
He also tackled the prospects for the economy over the next 12 months, and he prophesizes a recovery: a long, slow, hard recovery, an opinion echoed by economists, politicians and businessfolk alike. Mike Turner, Head of Global Strategy at Aberdeen, an investment company, predicts a steady growth globally. “Growth momentum will slow in 2010 but should remain positive, the balance of growth will shift eastwards and diversification into real estate is appealing.”
The IMF predicts a 3.1% growth to the world economy in 2010, and Turner attributes Asia, Latin America and Eastern Europe for the majority of this rise, as growth starts ‘gravitating east’. “A combination of buoyant commodity prices, substantial public expenditure and loose monetary policies has boosted prospects in these regions where the impact of the financial crisis was less severe.”
This year will see real economic growth, after last year’s reconcilliatory period. Apocalyptic tales of ‘being hours away from locking every cash machine in the country’ in a period where a business fell every week (RIP Woolworth’s 1900-2009) have subsided. Most of us will return to normality relatively unscathed. 2010 will be a fresh start.
In the last year of New Labour, it is incredibly ironic how the song that best sums up the future of the British economy is the 1997 Labour ‘anthem’ ‘Things Can Only Get Better’ by D:ream…