The UK economy will shrink by 2.8 per cent this year as a result of the ongoing financial troubles, research from the International Monetary Fund (IMF) has suggested.
Reassessing its own forecasts for global growth, the IMF also added that the global economy will only grow by 0.5 per cent throughout 2009, as opposed to the 2.2 per cent it had predicted as recently as November 2008.
"Having let personal debt soar while allowing a huge bubble to form in the housing market as the banking sector ran riot, the UK will now be saddled with the consequences for many years," said Liberal Democrat shadow chancellor Vince Cable.
The financial strain will add pressure to reduce exposure to risks through supply chain management, as a supplier or client failing could potentially lead to fatal effects felt further down a supply chain.
Companies hoping to reduce their own exposure to risky clients or suppliers may wish to invest in a supply chain management company, which could not only reduce the risks faced by a business but also increase efficiency and cut costs, at a time when this would be most beneficial to UK companies.
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