Alumnus and economics journalist talks recession and recovery at Cardiff Business School

In this, the final week of the General Election campaign, economics and politics are more intertwined than usual, according to David Smith, Economics Editor of The Sunday Times.

At the first in a new series of Breakfast Briefings, organised by Cardiff Business School’s Executive Education programme, David addressed an audience of 50 business leaders, industry and governmental representatives. Providing a clear and concise narrative on the state of the UK economy, from recession to recovery, David also gave voice to potential challenges on the horizon.

Beginning with a look at the UK’s economic performance in the last 25 years, David highlighted the unprecedented 66 quarters of GDP growth prior to the global financial crisis of 2008. He argued that the effects and repercussions of the financial crisis will be discussed for decades to come but it’s important to consider where we are today and how far the economy has travelled.

Introducing some key economic indicators such as productivity and employment, David underlined that recovery had been slowed in part due to initially weak credit growth, household and corporate deleveraging, high inflation squeezing real incomes and regulatory backlash.

Looking to the future, the UK economy is facing domestic and international challenges. The most immediate concern is the outcome of the General Election. With no outright winner expected, this could lead to prolonged negotiations before a government can be formed with unstable coalitions necessitating a second election. Beyond the home front, the Eurozone and in particular the Greek issue and its impact on European integration looms large while the future of the UK’s EU membership – the in or out debate – poses its own risks.

The session closed with a lively Q&A touching on developing economic and industry data measurement tools and considerations around the direction of UK debt.

The Breakfast Briefings demonstrate one of the many ways in which Cardiff Business School and the Executive Education programme are engaging and working with the local business community and wider society. To sign up for future briefings and suggest topics of interest please contact Linda Hellard, hellardl@cardiff.ac.uk.