The financial turmoil and dramatic drop-off in business conditions over the past two months have darkened the economic outlook for 2009 even further, the CBI warned today (17 November 2008).
In its revised economic forecast, the CBI predicts that the recession which started in the third quarter of 2008 will now run for most of 2009 and see unemployment peak close to 2.9m.
The UK’s leading business organisation has downgraded its growth predictions for 2008 and 2009. GDP growth for 2008 has been revised down from 1.1% to 0.8%, and in 2009 the CBI now expects the economy to contract by 1.7%, against its forecast in September of 0.3% growth.
Unemployment is expected to reach the two million mark by the end of 2008, with the jobless rate rising to 6.5%. The number out of work is currently expected to peak at around 2.9 million (9%) by mid 2010.
www.cbi.org.uk
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