Downturn will continue, Bank of England chief warns

26/08/2008

The economy will continue to slow down, putting many people's budgets under ever-increasing strain.

This is the new warning from Charles Bean, incoming deputy governor at the Bank of England.

The current downturn is, the economist said, as bad as the 1970s and is set to "drag on" for a "considerable time".

Mr Bean added: "We've got our fingers crossed that things will improve. But there is the recognition that there is still a long way to go yet."

"This is just a transitory period of subdued growth and we will get through the other side and the growth will resume to more normal levels."

According to the International Monetary Fund (IMF), a global economics organisation, the credit crunch will lead to world growth being pegged back this year.

Its current forecast shows that the global economy will grow by 3.9 per cent in 2008 - down from its July prediction of 4.1 per cent.

Tags; Current UK Economy, Budgeting Advice,

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