'Demand from India will help UK through recession'
The demand from emerging economies such as China and India will help the British economy sail the recession tide, according to economist Prof David Greenaway.business Updated: Jan 20, 2009 22:04 IST
The demand from emerging economies such as China and India will help the British economy sail the recession tide, according to economist Prof David Greenaway.
Stating that the world was moving through 'extraordinary times', the vice chancellor of the University of Nottingham said: "We hope the recession will be relatively short but it won't be painless."
He said the Government had done as much as it could, pumping taxpayers' money into the system, but a big bill awaited them.
"We shouldn't be under any illusion that it is going to impact in years to come in higher taxes and lower public spending. We do need a stimulus from big engines such as China and India and I think we will get that. They are continuing to grow," Greenaway said.
"Significantly, the Chinese authorities have announced a multi-billion dollar stimulus. The depreciation of sterling is helpful - we can't rely significantly on Government for demand increasing through this recession.
"We can't rely on the consumer for a year or two. We have to rely more on exports. Although it might look as if it is some of symptom of national failure that sterling depreciates, it is actually helpful.
"It makes our exports more competitive - and those exports include services, tourism and higher education," he said.