Home Blogs Chemicals and the Economy Most economic forecasts are too optimistic

Most economic forecasts are too optimistic

Economic growth, Financial Events, Leverage
By Paul Hodges on 31-Jan-2009
GDP forecasts.jpg

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.