UK recovery will be "tough" next year

24/09/2009

The UK economy is looking brighter as it's expected to grow modestly over the next four months, according to the business group CBI.

But next year looks "fragile" say CBI bosses. A recovery has started and the economy is galvanising back into action, but the pace is expected to be slow next year.

CBI director-general Richard Lambert says the short-term positive outlook is down to a growing global economy, the weak pound and the government injecting more cash into the UK economy.

Plus consumers are expected to enjoy a spending spree before January ahead of the VAT rises. But then there is nothing driving "robust economic growth" in 2010, according to the CBI chief.

And on top of that, the CBI believes unemployment will peak at around 3 million in the second quarter of 2010.

Recent comments from the Bank of England suggests that consumer consumption is not going to fuel the recovery, as people remain concerned about job security and interest rates remaining low into 2010.

Debt solutions firm EuroDebt says rising interest rates can have a dramatic impact on household budgets, with many finding that they cannot make ends meet. They will need to look at non-borrowing debt solutions like a Debt Management Plan'>Debt Management Plan or an IVA. Personal insolvency figures are predicted to rise into 2010.

• Share
• 
• 
• Store
• 
• Follow
•