We will have to pay for excesses of the past

RECENT economic reports have a hint of desperation about them as they struggle to suggest the battered economy will revive in two years time.

The bit between 2009 and 2010 is being glossed over, as the economy is expected to plunge to its worst recession ever in modern history.

If it’s true, the 9-10% fall in output this year is from a high base and even if growth reverts back to 2005 levels then that would be no bad thing.