Need for debt management highlighted by BCC forecast

Thursday 18th June 2009

The need for good debt management is set to continue as the British Chambers of Commerce (BCC) warned against speculation of an economic recovery.

The BCC said: "Recovery is neither imminent nor guaranteed."

In light of this, it is possible that debt management could prove a vital weapon for many at a time of particular economic volatility.

"Britain's fiscal position is unsustainable in the medium-term, with public sector borrowing of more than 12 per cent in both 2009-10 and 2010-11, and with debt rising to dangerous levels," the BCC added.

The organisation suggested that 'credible measures' needed to be taken in the medium-term if fiscal deficits and debts are to be reduced.

David Kern, chief economist at BCC, commented: "The UK medium-term economic outlook is grim and we are facing a period of austerity.

"The need to slash government borrowing and reduce debt after the recession ends will inevitably dampen UK growth prospects for a considerable period."

Unemployment is also expected to rise, according the BCC, with levels reaching 3.2 million in the second half of 2010. This amounts to ten per cent of the British workforce.

An annual average fall of 3.8 per cent in GDP is expected in 2009, rising slightly in 2010 by 0.6 per cent.

These figures stood at 2.8 per cent and 0.6 per cent respectively in March.

Although the BCC has suggested that this recession will not prove to be as severe as that of the 1980s, securing good debt management services could be a good way of preparing for the worst.


News article brought to you by Debt1 – UK debt management specialists.

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