Sorrell predicts L-shaped recession until 2010

WPP’s chief Sir Martin Sorrell predicts an L-shaped, or prolonged, recession until 2010.

Speaking to the Stationers’ and Newspaper Makers’ Company in the City last night, Sorrell said: “The first half of 2009 will be very tough, and the second half relatively better … relative to the first half.”

Economists define an “L-shaped” recession as protracted periods of economic stagnation, which differs from Sorrell’s previous forecast of a “bath-shaped” downturn.

However, Sorrell was positive about next year, adding: “In 2010 we will see a recovery – what we [WPP] called in our recent trading statement ‘a recovery of sorts’.”

Sorrell also revealed that WPP will now focus on what he calls the “Bric” countries, which include Brazil, Russia, India and China, plus “the next 11”, which include Mexico and Vietnam.

He also said that the advertising company would focus on new media and consumer insight – “new media is 25% of our revenues but we’d like that to be a third,” Sorrell claimed.

In five years time, Sorrell predicts WPP will be “more Asian, more Latin American, less focused on TV and radio and more on new media”.