26 July 2005
Further economic decline could have a significant impact on the personal loans market.
The slowdown in consumer spending and the slump in the housing market have already prompted the Bank of England to consider a cut in interest rates.
And while lower interest rates could make loans more affordable the wider economic downturn is likely to put people off taking on more debt.
Fears are growing over the state of the economy with the influential ITEM Club the latest to add its voice.
Speaking on the Today programme this morning, the ITEM Club's Professor Peter Spencer said: "The theory was, although they were depressed by the world recession, when the world economy picked up, they would pick up too.
"Last year we saw the strongest growth in the world economy that we have had in a quarter of a century, but an anaemic response from investment and exports. That is a very serious difficulty."
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