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UK recovery will be ‘fragile’
The UK's economy will recover more slowly than previously thought next year, according to the Confederation of British Industry (CBI).
The CBI has predicted that GDP will increase by 2% in 2011, not 2.5% as forecast in June this year. The revision has been caused by the government's comprehensive spending cuts aimed at reducing the record level of debt.
However, the CBI did state that the prospect of the UK returning to recession was "unlikely".
"The degree of uncertainty around the outlook remains high, but our view is that the UK's tentative recovery will be sustained, albeit with weaker levels of growth," said CBI Director-General Richard Lambert.
"The fragile nature of the recovery is why, in the forthcoming spending review, the government must focus its scarce resources on those areas which most galvanise growth, namely infrastructure and capital investment."
The UK economy grew by 0.3% and 1.2% in the first two quarters of 2010 respectively.
Post Date: September 22nd, 2010
The CBI has predicted that GDP will increase by 2% in 2011, not 2.5% as forecast in June this year. The revision has been caused by the government's comprehensive spending cuts aimed at reducing the record level of debt.
However, the CBI did state that the prospect of the UK returning to recession was "unlikely".
"The degree of uncertainty around the outlook remains high, but our view is that the UK's tentative recovery will be sustained, albeit with weaker levels of growth," said CBI Director-General Richard Lambert.
"The fragile nature of the recovery is why, in the forthcoming spending review, the government must focus its scarce resources on those areas which most galvanise growth, namely infrastructure and capital investment."
The UK economy grew by 0.3% and 1.2% in the first two quarters of 2010 respectively.
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Post Date: September 22nd, 2010
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