Thomson: We are in a never-ending cycle of recession

Developed nations are stuck in a "never-ending cycle of recession" which will lead to a huge growth crisis in the summer of next year, Ignis' chief economist Stuart Thomson has warned.

Despite predicting a pick-up in UK GDP output in the fourth quarter of this year and the first quarter of next year, the following Q2 and Q3 will be painful, he said.  Markets will realise growth is still below normal productivity levels and worry about debt, while central banks will be forced to come up with a unified response to tackle the crisis. "It will take a number of years to get through these problems and we will get a new round of fiscal tightening, causing a Victorian environment of thrift," Thomson said. "We are in a never-ending cycle of recession - crisis, response, i...