The UK will enter a recession as severe as that of 1991, with the economy shrinking 2.5% from its peak before reaching a trough late next year, according to a sharply revised forecast from employers’ body the CBI.
Unemployment is expected to reach 9% by 2010, leaving nearly 3m people out of work. In 2009, the economy is expected to contract by 1.7% against a growth forecast of 0.3% made in September.
The CBI took the unusual step of issuing a revised quarterly forecast just two months after its outlook in September predicted a short, shallow recession for the second half of this year.
Ian McCafferty, chief economic adviser to the CBI, said the financial crisis had dramatically changed the picture for business.
Financial Times
No comments yet