Housing expert predicts a "Nike swoosh" recovery

The MP for housing and planning has predicted that the UK will have a ’swoosh-shaped’ recovery from the economic downturn.

In a speech at a Harrogate conference, John Healey suggested that the sharp credit crunch-driven downturn in output would be replaced by a slow, steady rise.

He said that this fall then rise in output would look like a ’Nike swoosh’ if plotted on a graph.

Groups including the government, the Confederation for British Industry and the IMF agree that the UK will see a contraction in output of three to four per cent this year.

However, analysts have been split on how the economy will be affected by the crunch over the long term.

The possibility of a quick ’V-shaped’ recovery, a slower ’U-shaped’ turnaround or a ’W-shaped’ double-dip recession has been advanced by various experts.

Nouriel Roubini, the New York-based expert known as ’Dr Doom’ for his consistently bearish predictions, has suggested that the economy will endure a prolonged ’L-shaped’ stagnation.

Mr Healey commented: ’Personally, I predict a recession this time in the shape of a Nike swoosh in the terms [that] households [will] take time to rebuild both confidence and the balance sheets.’ADNFCR-2318-ID-19225271-ADNFCR