Our economy is in a technical recession, which we can define as two consecutive quarters where growth is negative.  In 2008, for the latter months of the year, the gross domestic product fell by 1.5% which was more than expected.  Experts are convinced that this recession is going to last until early 2010.

How bad is the recession going to get?

The financial institutes are not lending, consumers are not buying, the housing industry is continuing to lose its value, and many retailers are beginning to close their door by the truckload full. The sterling is very shaky when compared to the US dollar and the euro with unemployment rising sharply.  Therefore, the immediate outlook is not a very hopeful one.

There are quite a few analysts who are predicting that this recession will go on for the rest of 2009.  That will make it consecutive six quarters where the economy will become smaller by close to 3%.

On average the post-war recessions tend to last for just over ten months.

At the current rate if the downturn continues for six consecutive quarters that will make it very a long haul by some standards.

A few of the analyst believe that the current recession will last in the very least until 2012.

According to the analyst, not everyone will want to borrow money and consumers will probably be slow to respond to the changes made by the government.  A senior Economist has been recorded stating that the UK should look for negative growth in 2009; only to be followed by an early recovery in 2010.

The GDP has taken a beating with the prospects of a collapse of the banking system, which may most likely have to be adverted by the government.  This suggests that the economy may be entering a time that is similar to the 1980’s.

One analyst has gone on record to state that this recession is international and most likely to cross-sector rather than just being localized.  Normally one market pulls up another when there is a recession bout with this being global everyone suffers.  Recession often has a heart in one sector that is buoyed up by others.  With this being global, it is truly a worry.  This one started in the construction industry but it has now spread out to just about every sector.  Others are not so optimistic.  They are predicting that the finish of this  downturn but not until late 2010, and when unemployment has hit 3.5 million.  To see recovery even sooner the government needs to take bolder actions and force the banks to start lending again.  Clearly, what is the credit crunch has now transmuted itself from a financial crisis to an economic struggle.