Asked if there was a danger that organisations like the British Chamber of Commerce were talking us into a recession, the PMS said that the Prime Minister had been asked this question in Japan in the last half an hour. The Prime Minister made the point that this was a global problem, as the discussion at Hokkaido had demonstrated, faced by all countries and all economies. It was caused by a rise in commodity prices, combined with the credit crunch. However, the UK economy continued to grow and was well-placed to deal with the problems, given that we had a high level of employment, lower inflation than both the EU and the US, flexible markets and low-levels of public debt.
Asked repeatedly if that meant we could avoid a recession, the PMS said that the Treasury published the economic forecast twice a year (Pre-Budget Report and the Budget) and he was not going to forecast a forecast.
Well that's nice to know
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