Economic recovery six years away

by David Masters

Story link: Economic recovery six years away

The worst effects of the credit crunch will not be over until 2010, a survey of risk management professionals has revealed.

The return to normality will take even longer; six years was the average prediction for those who believe this will happen.

Almost a quarter of respondents, however, said the economy will never return to 2006 pricing levels, whilst 39% said the worst effects of the credit crunch will endure past 2010.

GRS, who conducted the research, said the prolonged recovery period is due to securitisation markets coming to a standstill.

Richard Lumley, managing director at GRC risk consultants, said the risk management landscape will change significantly over the next two years as the sector restructures to deal with the credit crunch.