Monday, June 16, 2008

CBI says growth will be slow (but not negative, never!)

Slowest growth in seventeen years expected for 2009

"Rising commodity costs and weaker consumer demand will combine to push down next year’s GDP growth to the lowest rate since 1992, according to the CBI’s latest UK economic forecast. The UK’s biggest employers’ group said today (Monday) that it has lowered its forecast for GDP growth in 2009, by 0.4% to 1.3%. The forecast for growth in 2008 is essentially unchanged, at 1.7%, down only 0.1% on March's forecast."

Posted by drewster @ 09:36 PM (738 views)
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3 thoughts on “CBI says growth will be slow (but not negative, never!)

  • “That said it is important to remember this is not a forecast for recession. Back in the early 1990s, we had a prolonged period of plummeting consumer demand and there were large job cuts across the board,” said Richard Lambert, director of the CBI. “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.”

    Ahh yes, that old canard. Let’s not talk ourselves into a recession. Could we also talk down the price of food and petrol please? How about talking down the war in Iraq?

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  • It seems pretty clear to me that we are heading for a recession which from memory I believe the onset is defined as 2 consecutive quarters of “negative growth” (silly expression)

    What immediately strikes me is that the GDP figures will be about as believable as CPI & RPI – in other words the country will see a massive slow down evidenced by a drop in spending on the high street, massive rounds of redundancies etc etc and yet Gordon & Co will tell us that the economy whilst slowing has grown by ‘x’ which is miles better than the rest of the world particulaly G8 nations.

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  • it_is_going_with_a_bang says:

    Recession ? No never I wont hear of it ….

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