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UK predicts 2010 economic recovery

UK predicts 2010 economic recovery article image

The British economy will recover in 2010 but growth will be slow, according to a forecast made by the Confederation of British Industry (CBI). The group predicted that gross domestic product would remain low for the rest of the year, but this would indicate stability. "The UK economy is stabilising, with the worst of the quarterly falls in GDP behind us, but it will take until the beginning of next year before we see a return to growth," reported the CBI. CBI director-general Richard Lambert added that growth would be gradual as credit conditions were still difficult and have therefore affected business behaviour. The most important thing was therefore to ensure the 'green shoots' survived. "It will take some time before we can be sure these shoots have roots we can depend on for sustainable growth and, in the meantime, the government must do everything it can to help firms get access to credit," he said. The CBI predicted that by its conclusion, the recession will have shaved 4.8 percent off the UK economy, with the unemployment rate to hit 9.6 percent.

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