Economic recovery 'to be slow'

Date: 21st December 2009

Britain is likely to exit recession at the end of this year but pre-downturn growth levels will not be seen until 2011, the Confederation of British Industry (CBI) has said.

The business group predicted that there will be growth of 0.5 per cent in the last quarter of 2009 compared to the previous three-month period.

This will be spurred on by increased consumer spending, which will also result in small, but nonetheless positive, growth in the first two quarters of 2010.

However, the CBI said that GDP is unlikely to reach pre-recession levels until the end of 2011 as the economic downturn has had very severe effect on Britain's output.

John Cridland, deputy director general of the organisation, said: "The economy will be on a fragile path of very slow growth, as we continue to feel the lasting effects of the financial crisis.

"And it remains vital that government sets out clearer plans to address the fiscal deficit at its next opportunity in order to help shore up future UK economic prospects."