- Oct 11, 2013
- Reaction score
In real terms i do not see any increase as you say in the short term. We are importing global inflation through our imports counterbalanced by increased exports. From my conversation in BD per unit margins have fallen due to buyers really squeezing our exporters.
However our export basket has low price elasticity so our exporters can manage with a view to a brighter future.
Generally people are cautiously optimistic. We have enough fuel in the tank to see through this global downturn and still maintain a growth trajectory.
Newspapers need to sell hence the doom and gloom. It has taken decades for BD to grow its economic base, it will not take a few months for it to fall apart. But it does make for interesting conversations.
I agree about price elasticity - it will be interesting to see how far BD margins Vs buyers budgets can be pushed..
I am optimistic, as I feel in the UK, prices have gone up but salaries are having to follow suit. What this means for currency devaluation God knows