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 Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.