There is some depressing news for the economy on BBC Wales this afternoon.
According to various reports, hundreds of further jobs are under threat across Wales, including at Toyota on Deeside and Shops Direct in Powys.
Two local authorities – Swansea and Newport have also stated that they will be considering substantial redundancies to deal with their growing financial problems.
I was speaking to a very senior partner in one of Wales’ top accountancy companies at a dinner before Christmas. I asked him whether he through the economy would recover in a year and if companies would start hiring again.
His answer?
“Dylan, the last few months have been a precursor to a far worse economic situation and we ain’t seen nothing yet. Many companies have just been holding on to jobs until the Christmas period is over and it looks like we should all get ready for a Tsunami of business closures over the next few months”.
Unfortunately for the Welsh economy, that tsunami may just be about to hit.
We can only hope that the predictions of someone who has his finger firmly on the pulse of the Welsh business sector, and who is rarely wrong about such matters, has made the wrong call this time.
