Economic outlook brightens - Economy - News - Moneyfacts


Economic outlook brightens

Economic outlook brightens

Category: Economy

Updated: 23/09/2009
First Published: 23/09/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The UK economy will have emerged from recession by the end of the year, according to the latest prediction from the CBI.

Revealing its latest forecast, the business group said that near-term economic prospects were brightening, with a recovery underway in the global economy and production beginning to lift.

However, with hard up consumers reluctant to spend and VAT increasing back to 17.5% from 1 January 2010, constraints on demand are likely to persist, causing the pace of recovery through next year to be slow.

As a consequence, output in the UK is anticipated to grow by 0.3% in the third quarter this year and by 0.4% in the fourth, before falling back to 0.1% in the first three months of 2010.

"The outlook is improving as the UK draws strength from quantitative easing, a weak pound and a recovering global economy," said Richard Lambert, CBI director general. "Although growth this quarter should mark the end of the recession, conditions in the UK will remain tough for some time yet."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Base rate remains unchanged in surprise decision

Earlier today, the Bank of England’s rate setting committee announced that it had voted decisively to keep base rate on hold at its record low of 0.5%. But what does it mean for you?

Budget 2016 – an overview

Well, George Osborne has just revealed the Budget for 2016 – his eighth so far as Chancellor – and as ever, there were some winners and losers from the whole thing. Below is a quick overview of the key points.

What does a US Fed rise mean for the UK?

The US Federal Reserve has decided to raise interest rates, and although you may not think that financial events happening in the US will have much of an impact on UK soil, you may be surprised…