CBI: Economic turbulence to have limited impact

News Article - 06 May 2009
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In its latest economic forecast, the Confederation of British Industry (CBI) said that the current volatility within the financial markets was unlikely to have a major impact on the country's economy.

However, "turbulence" within the credit markets could slow down the UK's economic growth, the CBI said, suggesting that 2008 would see growth of 2.2 per cent after previously predicting a rate of 2.4 per cent.

Richard Lambert, director general of the organisation, said: "British businesses have been growing strongly this year and the fundamentals of the economy are sound."

Businesses have yet to report any difficulty in implementing their investment plans, although smaller enterprises could be affected by the credit market problems because they tend to rely on loan finance, he added.

Commenting on the economy recently, Ian McCafferty, the CBI's chief economic adviser, argued a slowdown in inflation has made the need for further interest rate rises questionable.

The economy now needs a sustained period of "stability", he said.

Article keywords: The UK Government’s recent introduction of a cap on non-EEA nationals who can enter Britain each year has moved the goalposts for the nation’s employers.

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