IPPR: It could be years before the economy is recognisable

Date: 24th February 2010

The UK economy may not start to look recognisable for a few years yet.

This is the view of the Institute of Public Policy Research (IPPR), which said companies that have lost sales during the recession may not get them back for some time.

It follows the publication of an economy report by BDO, entitled Transitions, which has forecast that the next five years are likely to be challenging.

According to the BDO study, "There will be no return to 'business as usual' for some time to come".

Tony Dolphin, senior economist at the IPPR, said that confidence among the UK's businesses could be the key to economic growth.

"A few years down the line the economy will be back to looking recognisable. We are getting back to normality," he said.

"Part of that will be about businesses getting their confidence back and households getting their confidence back. If businesses are not confident, then we won't get back to normal. If they are confident, then we will."