Business News

CBI Predict Deeper UK Recession

The latest CBI forecast predicts things are going to get worse for the economy before they get better.According to the CBI press release:

“…it will take until the second half of next year until the impact of interest rate cuts, falling inflation, the relative weakness of sterling, plus the fiscal boost, start to have a stabilising effect.

The rapidly deteriorating global economy and the continued difficulties UK businesses are facing in accessing credit will push the economy deeper into recession in 2009.”

CBI predictions include:

  • the recession will last throughout 2009;
  • the economy is expected to contract by 3.3%;
  • unemployment will reach close to 2.9 million by the end of the year; and
  • the economy is expected to stabilise early next year with the recovery building throughout 2010.

To read more about the CBI’s predictions visit the links below.

Internet links: CBI press release and CBI forecast