A recession is what is needed to allow the UK economy a period of recovery, although the next year will be tough, one sector commentator has claimed.
In news that may be of interest to people seeking unsecured loans, Michael Baxter, economist at financial data collection and research company Defaqto, said there was an "extremely good chance" that Britain was already in a recession.
However, he explained that as demand collapsed, commodities such as oil would decline in price and that would "create the seeds" for a recovery.
"In some ways I feel the quicker this happens the sooner the economy can recover ... The sooner house prices fall to a level that is sustainable, the sooner that oil and food prices fall because people can't afford the current prices," Mr Baxter noted.
He concluded that any steps the government took to put this process off would be delaying the inevitable.
People looking for unsecured loans may also be interested to hear that according to a report by the Organisation for Economic Cooperation and Development, the UK economy will grow by just 1.2 per cent for the whole of 2008.
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