Darling to optimistic about end of recession

Earlier this month the Chancellor of the Exchequer, Alistair Darling, indicated that there was a chance that the recession in the UK could be over by halfway through this year.

However, officials from Downing Street have now admitted that the chancellor was somewhat over-optimistic with his prediction. Around six weeks after Darling made his prediction Downing Street stated that this was his most optimistic view at the time of the pre-budget report.

Darling was speaking to the common towards the end of November when he made the prediction, but was faced with scepticism from economists when he said that the recession could be over in as little as eight months.

However, according to reports the Prime Minister, Gordon Brown, now thinks that the recession could in actual fact last for a couple of years or even longer. Lord Mandelson, the Business Secretary, has indicated that he also thinks that the recession could be a long and drawn out one.

A spokesperson for the Prime Minister recently stated: ‘The Treasury have to set out their best view, which was their best view at the time of the PBR. It was a view that was very much in line with the view taken by the Bank of England. But they also acknowledge that there is obviously uncertainty around any forecast.’

Whilst Darling was indicating that the economy could start to experience a revival in the middle of this year, the majority of economists have indicated that the recession is likely to last around a year longer than this.

When asked recently if the recession could last for two years, Gordon Brown said: ‘I think that depends on the level of international co-operation.’

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