CBI Cuts Forecasts for Growth and Warns of Economic Gloom; the Slowdown Will Continue into Next Year
Byline: Aled Blake
THE UK faces prolonged economic misery from the impact of the credit crunch, a leading business organisation is warning today.
The CBI said the effect of the tighter lending conditions on households and business "was yet to be fully felt" as it slashed growth estimates for this year and next.
Its latest quarterly forecasts now predict UK growth of 1.8%in 2008, weakening to 1.7% the following year.
The increasing pessimism contrasts with its previous expectations of 2% growth this year and 2.1% in 2009.
"The process of credit tightening will act as a drag on real activity, thus prolonging the slowdown into 2009," the …
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Publication information: Article title: CBI Cuts Forecasts for Growth and Warns of Economic Gloom; the Slowdown Will Continue into Next Year. Contributors: Not available. Newspaper title: Western Mail (Cardiff, Wales). Publication date: March 25, 2008. Page number: 26. © 2009 MGN Ltd. COPYRIGHT 2008 Gale Group.
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