The Confederation of British Industry (CBI) forecasts growth for the economy in 2011, but warns that the pace of recovery will be slow. The knock-on impact of December’s bad weather has stifled enterprise and the business group now expects this year’s GDP growth rate to be 1.8 per cent, down slightly from an ‘already sluggish’ 2.0 per cent.
Although risks remain, the CBI maintains its view that the risk of a double dip recession is low.
Fears of a return to negative growth were heightened by official figures suggesting that GDP shrank by 0.5 per cent in the fourth quarter of 2010.
John Cridland, CBI director-general says, ‘The early estimate for GDP growth in the final quarter of last year came as a surprise to everyone, suggesting that underlying growth may have been weaker than previously thought.’ He adds that next year may bring better fortunes. ‘We must wait and see just how weak it was, and how much was down to December’s bad weather, but we do expect growth in 2011, albeit rather anaemic and sluggish, which will accelerate during 2012.’
APA
Although risks remain, the CBI maintains its view that the risk of a double dip recession is low.
Fears of a return to negative growth were heightened by official figures suggesting that GDP shrank by 0.5 per cent in the fourth quarter of 2010.
John Cridland, CBI director-general says, ‘The early estimate for GDP growth in the final quarter of last year came as a surprise to everyone, suggesting that underlying growth may have been weaker than previously thought.’ He adds that next year may bring better fortunes. ‘We must wait and see just how weak it was, and how much was down to December’s bad weather, but we do expect growth in 2011, albeit rather anaemic and sluggish, which will accelerate during 2012.’
APA
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