04/10/11 | Will there be a double dip?
The Suffolk economy is an interesting subject and one that as the weeks and months go by is likely to gather more and more column inches . Will there be more quantitative easing; we think so. Also we need some tax cuts, VAT at 20% is simply too high to sustain when spending is not high and for me this is part of the reason we have lower than expected growth. Its effects are starting to bite consumers and in turn that’s having a knock on effect to businesses now.
The Suffolk economy seems to be doing well enough though, people are remaining fairly realistic about things and although growth is still a word not often used we have seen less companies failing and many seem to be keeping their head above water. At least we know that any changes in the economy will be relayed to us through the media with such worrying undertones that even the most mentally stable of us would seriously think about relocating to a cave with all of our shiny things. Let’s hope there are some VAT adjustments made by the government after this projected round of QE and I suspect and hope that we have just avoided entering recession again (fingers crossed).Suffolk has a fair few mature heads in business now that have been around for a long time and seen things like this come and go. It is to the experienced people like this that most of us can learn something. This realisation that we do still need to remain cautious and to strengthen our business is as important today as it was 2 years ago and let’s wait and see, I just have a funny feeling we will have dodged the dreaded double dip this time but I am sure will know in the next few weeks. Most people I know are steady in terms of work volumes and it’s been like this for a while so I expect we have stabilised and we all watch and wait on Greece, Italy and the USA.
It has been a very steep learning curve for most and many of us have not taken the breaks fully off their business. If the worst comes to the worst we will carry on as we were should the double dip bite.
