Talking Point: Recession Fears

Join the debate about whether or not the UK economy is set to take a downturn and a recession is on the way.

House prices outside London are beginning to 'cool', the stock market is as at its most unpredictable level for years and the country is awash with debt, made worse by rising interest rates. So, is a recesssion on the way? Share your thoughts below using the Comment on this Article box below.

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User Comments:
From Tim
All this talk of recession can be a self-fulfilling prophecy. Sentiment can be as important as fundamentals, so if scare mongering continues in the media we are more likely to have a downturn. It would be nice if the media reported the news rather than second gusessing it. Actually the fundamentals aren't all bad. Debt is high but interest rates are still historically low and seem to have peaked, so the debt should be manageable. The banks may have have got themselves into a bit of trouble, which they deserve, but they have been so profitable in recent times that they will ride it out.As for house prices, if you have new or recently buiilt property on an estate of like buildings you are living in a commodity and are more likely to see a fall, in some areas. Period property cannot be replaced, is always desirable and will not fall.
From Joshua Williams
The current stock market downturn is nothing to worry about. The market will correct itself shortly and no doubt will continue to rise over the autumn, as it does most years. There is still a massive shortage of housing in Britain so property will remain a sound investment for many years to come.
From Bradley
We have been in an economic bubble for a long time now so I think a downturn is on the cards.
From bull bill
The nature of capitalism means that we need to have peaks and downturns. We've had a good run but now it looks like a downturn is on the way. Recession? Not so sure - emerging markets in Asia and continued new technology sectors should keep the global economy going for a while longer yet.
From John360
Asia may well be the place that is fueling the success of the global economy, particularly China. Its worth noting however that their recent success is built on their ability to produce cheap products for the US and European markets. If consumers began spending less in these areas - as appears to be the case now - then the market for China's new products will diminish. So a global economic downturn and recession could well be on the cards.
From Sarah Hampton
Property prices are too high in my opinion. Any economic slow down in the City will have a knock on effect on property prices in London as bonuses diminish and at the top end of the market prices will fall somewhat, having a ripple effect from London outwards. We could see property prices fall as much as 20% over the next few years.