April 20, 2009

CBI says recession has turned a corner

The Confederation of British Industry said the current recession had turned a corner, but a quick recovery was not in the cards.

CBI said Monday the worst was over, The Times of London reported. The recovery, however, was expected to be slow and fragile.

CBI said the country's gross domestic product would need to wait until the spring of 2010 to grow. It predicted the number of unemployed in Britain, before the recession passed, would reach 3.25 million, The Times said.

Ernst & Young ITEM Club chief economist adviser Peter Spencer said, one or two positive signs have started to appear. However, Spencer warned of another 12 to 18 months of serious grief.

Chancellor of the Exchequer Alistair Darling is expected to announce Britain's gross domestic product would shrink 3 percent in 2009, the newspaper said.

The CBI has revised its GDP growth predictions for 2009 from minus 3.3 percent to minus 3.9 percent, including a downturn of 1.8 percent for the first quarter of the year.

In the second quarter, however, that contraction could turn around to marginal growth of 0.2 percent, CBI said.