Every recession is different - both in terms of the initial causes and also the differential impact that it has on consumers, businesses, industries and regions. Deutche Bank’s latest UK economic forecast is pretty gloomy - they are now pencilling in economic growth of just 1.2% in 2008 and 0.3% in 2009. House prices are now expected to fall 25% in nominal terms (35% in real terms) from peak to trough.

In their research they produce a rather natty chart showing how quarterly growth rates of the various output and expenditure components of GDP have behaved during previous UK recessions. On average the level of real national output declines by 0.7% for each quarter of a ‘technical recession’ - but capital investment tends to fall by much more - it might be worth asking students why this happens? Why - on the basis of previous experience - does the industrial sector seem to bear the brunt of recessionary conditions? Why does government spending continue to rise and that of the farm sector?

If a recession happens in 2008-09 - which industries are most likely to feel the full force of the decline in real activity? Presumably construction and financial services will be badly affected - from where I am sat in an Edinburgh hotel at the peak of the Festival season it looks like the tourism and leisure industry is also having a rough ride too!