IPPR UK economy five years away from recovery
The Institute for Public Policy Research (IPPR) has warned that it could take years for the UK economy to recover, which may prompt many business to look for international money transfers to more profitable markets.
According to IPPR, it could take as long as five years before the UK shrugs off the recession, following a forecast by the Confederation of British Industry that the economy will continue to see sluggish growth into 2012.
Tony Dolphin, senior economist and associate director for economic policy at IPPR, concurred with the prediction.
"It is in line with most other current forecasts for the UK economy," he revealed. "It reflects the fact that conditions have got tougher for UK exporters."
Additionally, problems in the eurozone over Greece, Spain and Italy have put confidence on the wane, dampening the UK's trade with the region.
Mr Dolphin continued: "At the same time, high levels of inflation that we're seeing in the UK have [sapped] UK households' ability to spend as well."
Recovery will take "many years", according to the expert, with the next two years likely to see the country struggle to achieve pre-recession levels of output.
He concluded: "It is going to take a few more years after that before we can say that the economy has recovered and unemployment has fallen and that we're using all of our resources again."
Interactive Investor recently claimed that wealthy citizens of recession beleaguered countries are looking for safe havens to put their money.
With mounting debts in Europe and North America the company said that negativity was "ringing in the ears" of investors.