Recession to last 'for most of 2009'

News Article - 24 May 2012
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The UK's expected recession will last for most of 2009, with unemployment reaching nearly three million, the Confederation of British Industry (CBI) has predicted.

In September, the CBI predicted GDP to grow by 1.1 per cent in 2008 and 0.3 per cent in 2009, but has now revised its figures to 0.8 per cent for this year and negative growth of 1.7 per cent for next year.

The CBI's deputy director-general, John Cridland, explained that the revision to the forecast was due to the "immense strain" on the banking system which has sent consumer and business confidence "plummeting in its wake".

"Given the speed and force at which the downturn has hit the economy, we have reassessed and downgraded our expectations for UK economic growth," he said.

"But the fast-moving and global nature of this crisis means it is impossible to look far ahead with any certainty."

Additionally, the CBI predicted that there will be two million out of work by the end of the year, with the unemployment rate reaching 6.5 per cent.

This number will peak at roughly 2.9 million (nine per cent) by the middle of 2010.

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