Mixed fortunes for UK's economic recovery
The UK economy is expected to grow at a slightly faster pace in 2010 than had been expected. But the pace of recovery looks to be more sluggish in 2011 than previously forecast, following measures announced in the emergency Budget to deal with the deficit, says the CBI employers’ body.
In its latest economic forecast, the CBI predicts that the UK economy will grow by 1.6% in 2010, up from 1.3% in its previous forecast in June. However, its forecast for 2011 is down to 2.0% growth.
The range of forecasts collated by the Treasury runs from 1.2% to 1.9% growth with a midpoint figure of 1.6% in 2010. For next year the range is from 1.0% to 2.8% growth and the median is 2.0%.
The government's own forecasts are for growth of 1.2% this year, rising to 2.3% in 2011.