PHOENIX -- If you think the economic news is grim right now, a Valley economist warns that it could be even worse in 2009.

Elliot Pollack said foreclosures will increase in the next year.

And, he said, commercial real etate markets will have problems.

"'There's still a lot of commercial building, but if you take a look at vacancy rates, they're going up rapidly," Pollack said. "Absorptions are falling through the floor and, as a result, once that now in the pipeline is built, there will be nothing behind it, so the commercial markets will be worse.".

He said the recession will still be in full force next year, meaning consumers still will be trying to pay off debt instead of spending money on big-ticket items.

"Jobs are declining and hours worked are declining, so the average guy is squeezed," Pollack said. "So the average guy has to go through a period where he spends less, so he can restructure himself so he has less debt and more savings."

Pollack believes 2010 will be only slightly better than next year.