King: economy entering recession

22 October 2008

Britain’s economy is almost certainly entering recession, according to Bank of England Governor Mervyn King.

Speaking last night, King said that the British banking system had been closer to collapse than at any time since World War I, and despite the Government’s bank bailout scheme potentially preventing an economic disaster, he said that the economy faced “a long, slow haul to restore lending to the real economy, and hence growth of our economy, to more normal conditions”.

The effects of the economic downturn have become obvious in recent months, with unemployment rising and increasing numbers of businesses, especially those connected to the housing market, having to cut back or close down.

A spokesperson for debt management company Gregory Pennington stressed the danger of people being pushed into debt. “As the economy deteriorates, and people find themselves stretched financially, there’s a very real risk of large numbers of people falling into debt.

“We advise anyone who finds themselves in debt to seek debt advice as soon as they realise they have a problem. The longer they leave it, the more difficult the debt management process could prove to be.”

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Debt management company Gregory Pennington provide debt advice & solutions for people in various financial situations, including debt management plans and debt consolidation. If you are struggling with debt, contact one of our expert debt advisers today.

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