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UK economy in worse shape than imagined

September 8, 2008 by admin  
Filed under News, News-Banking

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According to the largest manufacturer’s association in the UK, the CBI, the state of the economy in the UK is in worse shape than most actually thought. The CBI has said that the economy is deteriorating far faster than was originally thought, with the association’s director stating that there was “no doubt that the mood has darkened in the last two or three months.” He gave the stark warning to members in a letter.

The director, Richard Lambert, also went on to state that industry officials, including those from the CBI, had been far too optimistic about the state of the economy, and as such the CBI has now revised its growth forecasts downwards. The association has cut its growth forecast for next year from 1% to 0.4%, and the governor of the Bank of England, Mervyn King, has already indicated that the nation faces stagnant growth levels over the coming twelve months.

Lambert said that the global had been ‘bigger and broader’ than had first been anticipated. He added that the soaring level of inflation had taken most people by surprise, and that high inflation levels and slow growth had sparked widespread fears over the nation sliding into recession.

He went on to state: “A year ago it seemed reasonable to hope that the worst would be over by now. That has not turned out to be the case.”

Lambert added: “This is why most analysts are now suggesting that the economy will at best only manage to stagnate in the coming few quarters, and that the growth prospects through 2009 and into 2010 look no better than anaemic.”

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  1. Savings accounts suffering due to high inflation says:
    September 8, 2008 at 4:19 pm

    [...] UK economy in worse shape than imagined [...]



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