Queen's Diamond Jubilee will hit the economy, warns Sir Mervyn King He told the committee that the state of the economy "still felt like a crisis" and said it would take some years before the country is back on track. "The financial sector is not back to normal," he said. ""We are going through a major period of deleveraging, we still have some way to go in that respect and we still have the problems in the euro area. It will take a number of years before we are through all this."" However, Sir Mervyn did indicate he believed the country could get the economy back to the same levels as before the financial crisis. "I would like to think that we can go back to the sort of economic growth rates we saw in the past," he said. Those people who are struggling on low incomes would feel it rather a policy of despair to say that we can't achieve growth. I see no economic reason why we cannot, in the long run, go back to the sort of growth rates we had before. Once we come through this crisis we will able to get back to that sort of period again, but it will take some time. Last month, he said the extra Bank Holiday for the jubilee would be one of the reasons why the economy would "zigzag" from positive to negative growth this year. In the second quarter after the Royal Wedding last year, the UK economy grew just 0.1 per cent while the ONS said the wedding was a "special factor" that contributed to a poor GDP result.