CBI cuts UK growth forecast
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The CBI has cut its forecast for UK economic growth to 0.9 per cent this year and 1.2 per cent in 2012.
The figure is down on its previous prediction of 1.3 per cent in 2011 an 2.2 per cent next year. The firm also warned that unemployment will jump from 8.1 to 8.5 per cent in 2012.
The CBI believes the UK will avoid a double-dip recession but has warned that there must be more spending cuts to protect the UK’s AAA rating. The CBI has highlighted concerns in the eurozone for its gloomy outlook.
CBI director general John Cridland says: “The government must stick to its plans to bring down the deficit to maintain confidence in the UK’s public finances and keep the cost of borrowing down,”
The firm also recommended new measures to bolster the economy. Dubbed “Plan A+”, the measures look to attract £200bn of private sector investment into infrastructure in the next five years. It also looked at plans to tackle the housing market and youth unemployment.
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