CBI: UK to avoid double-dip recession

Date: 14th February 2012

Small business owners around the UK could be encouraged by the recent economic forecast published by the Confederation of British Industry (CBI).

The organisation's latest economic forecast shows that the UK is on course to avoid the much-feared double-dip recession.

According to the CBI, the UK's GDP will grow by 0.9 per cent in 2012, with further growth of two per cent in 2013.

While the forecast is not predicting huge growth, the report is more encouraging than a number of others, which paint a far bleaker picture.

John Cridland, the CBI's director-general, said: "Economic conditions will continue to be tough, especially in the first half of the year, and the UK recovery will depend on the successful resolution of the eurozone crisis.

"But some activity has picked-up since before Christmas and the mood among many businesses has improved, with exception of companies serving the UK consumer where business remains flat."

The news comes shortly after new figures revealed that the UK's biggest banks failed to meet the small business lending target placed upon them by Project Merlin.

A target of £76 billion was set for the banks, but they ultimately fell short by £1.1 billion, citing lack of demand as a key factor for the result.