Recession 'still deep'

News Article - 10 February 2009
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While for many firms in operation at the moment, surviving the financial downturn may be one of their key business goals, one sector commentator has warned that the UK is still in the grip of a "deep recession".

Howard Archer, chief UK and European economist at IHS Global Insight, said that the rate of economic decline may have "bottomed out" but that the 1.5 per cent contraction seen in the fourth quarter of 2008 may be the deepest period of downward movement for the economy.

"There may be a little bit of improvement compared to that but there is no doubt we are still going to see a very sharp further decline," he added.

Mr Archer went on to note that the economy would continue to decline over 2009, but that the first half would be worse than the second half.

According to the International Monetary Fund, world growth will fall to half a per cent in 2009, its lowest rate since World War II.

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