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CBI Predict Deeper UK Recession

March 2009

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 before 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 CBI forecast