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.
Source: CBI press release CBI forecast