Feeds

World outlook worst since dot-com crash

And a very happy new year to you too...

The Power of One Infographic

The economic outlook for the UK is looking as bad as at any time since the dot-com crash of 2001.

A survey of 55 leading economists by the Financial Times reveals low confidence in the state of the economy and fears that there is little public authorities can do to improve the situation.

Almost two-thirds of those questioned by the paper believe house prices will fall this year. Nine out of ten said that public finances are in poor shape, so there is limited room for the government to use tax cuts or public spending to reduce the impact of a downturn.

When the 55 economists were asked about the housing market, 21 predicted "modest or sustained price falls (up to ten per cent)", ten expected bigger price falls and 14 predicted a soft landing. Opinion was divided as to the impact of such a fall.

Willem Buiter of the London School of Economics believes house prices will fall by about 30 per cent in the next two years with no major impact on the UK economy - "On average, lower house prices don't make the UK consumers worse off. They lose as owners but gain as renters."

The economists said the main risk to economic stability was the effect of the credit squeeze. In second place was a bigger slowdown in the US, Europe or China, followed by inflationary pressures then the impact of a slowdown in the UK housing market.

In other news, the FT predicts an eight per cent rise in business insolvencies this year compared to 2007, according to a survey from credit management firm Euler Hermes.

More form the FT here. ®

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.