CBI predicts slowest growth since 1992
Jun 16 2008
“British economy to grow at slowest rate since 1992, CBI warns”
The Confederation of British Industry (CBI) is predicting that rising costs of commodities and less consumer demand will dampen GDP growth to its lowest level in 17 years during 2009.
According to the body's predictions, growth will slow to 1.3 per cent, down by 0.4 per cent on the body's previous forecasts.
Simultaneously, rising oil prices and more expensive commodity costs will fuel inflation, meaning it will stay above three per cent until the end of the fist quarter of 2009, the CBI said.
'The outlook has deteriorated in recent months, and considerable uncertainties remain,' explains CBI director general Richard Lambert.
He adds: 'These days, firms are leaner and more efficient and our economy's reach is far more global. We should avoid believing a recession is inevitable, or talk ourselves into unnecessary trouble.'
The CBI has recently called on the government to ensure that the Olympics provide a positive legacy for business in the UK.