Recession 'is over', CBI says

23/09/2009

Britain's economy will grow over the final three months of 2009, a top business group said in a new report out today (September 23rd).

According to the Confederation of British Industry (CBI), the recession has already ended - a trend which is likely to improve peoples' personal finances and help them to solve debt problems more effectively.

However, the report also warned that the outlook remains "tough" as the economy struggles to recover from the impact of the credit crunch.

The CBI said that the economy would grow by 0.4 per cent over the final three months of 2009 and by another 0.1 per cent over the first three months of 2010.

Richard Lambert, the organisation's director general, said: "The outlook is improving … Although growth this quarter should mark the end of the recession, conditions in the UK will remain tough for some time yet."

One of the major problems facing Brits is rising unemployment, which recently hit a 14-year high of almost 2.5 million, according to official figures.

Joblessness is generally a "lagging indicator" in recessions, meaning that total unemployment generally peaks well after the economy itself has returned to growth.

Accordingly, analysts expect the UK's jobless total to rise until 2010.

Tags; Current UK Economy, Young Family Finances, Retirement Money Problems, Recent Graduate Debt,

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