The UK economy could emerge from recession sooner than forecast,
according to a Confederation of British Industry (CBI) report
recently published.
The business lobby organisation said that recent indicators
showed levels of UK economic activity stabilising mid-year, which
could bring a “modest GDP growth over the second half of this
year”.
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Growth prospects, however, remain feeble for the whole of 2010 –
in the region of 0.9 percent compared to a 4.3 percent fall in 2009
– particularly given the ongoing tight credit conditions, the
report said.
The CBI report added that further but slower quarterly falls
should be expected in business investment, due to the ongoing
financial constraints, the significant excess capacity and concerns
about the strengths of future demand.
“We forecast a 5.7 percent decline in 2010, following a
particularly sharp 17.7 percent fall this year,” the report
said.
Antonio Fabrizio
