Britain's economy is finally stabilising, but the recovery will not properly begin until the beginning of next year, Britain's biggest employers' group warned today.
While other forecasters, including the National Institute of Economic and Social Research and the Chancellor of the Exchequer, are predicting an end to economic decline in the UK this quarter and a return to modest growth in the third quarter of the year, the CBI said today that it did not expect a pick-up to begin properly until the first three months of 2010.
Unlike more optimistic commentators, the CBI is now predicting minus 0.1 per cent GDP growth in the third quarter of this year, followed by 0 per cent in the final three months.
It then predicts very modest growth in the first and second quarters of 2010, at 0.1 per cent and 0.3 per cent respectively.
Vince Cable, the Liberal Democrat Shadow Chancellor, said: "This report is a warning that ministers are probably being premature in telling us the economy is in recovery."
- INDEPENDENT
UK economy stable but growth 'a while off yet'
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