‘Worst of the recession is over’

THE worst of the recession is over but economic growth will not return until 2011, according to a senior economist at the HSBC bank.

Mark Berrisford-Smith, the bank’s chief international economist, told an audience in Cheshire last night that the UK was faring better than many other countries and that well-managed businesses were working their way through the recession.

Mr Berrisford-Smith was the guest speaker at an event in Wilmslow hosted by the government’s foreign trade arm UK Trade & Investment, HSBC, business advisor Milner Boardman and solicitor Myers Lister Price.

Speaking to TheBusinessDesk.com the economist said Chancellor Alistair Darling’s prediction the economy will shrink by 3.5% this year was accurate. But he was less optimistic about the situation in 2010 expecting 0% growth compared with the government’s 1.25% figure.

“This time around it will be slow and drawn-out because the whole world is suffering together,” he said.

Mr Berrisford-Smith said the government must take radical action to raise revenue, cut spending or do both to avoid a legacy of this recession, “reverberating down the public finances for the best part of 20 years”.

He added: “It’s not as grim as you might have expected – we’re not suffering as badly as other countries. The economic numbers are dire but well-managed businesses are finding their way through. I’m not seeing complete doom and gloom.

“I think the worst of the recession is over but it may be a while before it starts growing and the growth may not be very strong. People are still spending money and there are even signs that credit availability is returning.”

The Springboard for Global Growth event was held to promote international trade and bolster the region’s involvement in export markets.