THE world’s economic prospects for next year can be summed up in one word, according to Treasury and Resources minister Charles Parkinson .

Bleak.

Credit remains tight and appears to be getting tighter and all Western economies are now in recession.

‘Property prices and stock markets are falling and consumer confidence is very low,’ he said. ‘Every economic indicator points to a sharp and prolonged downturn.’

But is Guernsey in recession? Deputy Parkinson said he did not have the necessary information to know for sure.

‘We have certain big ticket information like car and house sales, but I don’t know what retail sales are doing, for example,’ he said. ‘I don’t feel I have the information I would need to make that statement.’

However Deputy Parkinson did say that the economic difficulties faced by the island would continue for years, not months.