UK economic recovery to be 'slow and gradual'
UK economic recovery to be 'slow and gradual'
Monday 15th June 2009
The UK's economic recovery is set to be slow and gradual with growth not returning until next year, the Confederation of British Industry (CBI) has warned.The group said some business analysts had been too quick to jump on evidence of recovery and it would be some time before the UK could be sure there were dependable roots for sustainable growth.
The CBI has predicted GDP will level out during the second half of this year, followed by quarter-on-quarter growth of 0.1 per cent and 0.3 per cent in the first two quarters of 2010.
Commenting on the prediction, CBI director general Richard Lambert said: "The return to growth is likely to be a slow and gradual one; difficult credit conditions are still affecting business behaviour.
"For positive growth to return, lenders need to feel more confident so that credit can start flowing again."
It is predicted by the end of the current recession the UK economy will have shrunk by a total of 4.8 per cent, contracting 3.9 per cent during this year.
Mr Lambert admitted the worst part of the recession now appeared to have passed but said unemployment would peak at just over three million in the second quarter of 2010.
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