Most economic forecasts are too optimistic

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Prof David Blanchflower, of the Bank of England, is not optimistic that the current recession will end soon. He notes that “few macro-economists actually spotted the greatest financial crisis in a hundred years”. And in the chart above, showing OECD forecasts for the UK economy during the last recession, he demonstrates that forecasters kept predicting a “V-shaped recovery” for the whole 3 years of the downturn.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. The aim of this blog is to share ideas about the influences that may shape the chemical industry over the next 12 – 18 months. It will try to look behind today’s headlines, to understand what may happen next in important issues such oil prices, economic growth and the environment. We may also have some fun, investigating a few of the more offbeat events that take place from time to time. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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