UK’s economic recovery set to continue in 2011

The UK economy is forecast to show continued growth throughout 2011 according to the Director of the confederation of British industry

John Cridland, The director-general of the Confederation of British Industry (CBI) said the recovery for the UK from recession will be ‘modest, patchy, difficult and rather bumpy’. With many graduate jobs frozen, many graduates hope that 2011 would be a good year for strong growth yet John Cridland believes;

“Although there are a number of risks to the UK’s economic outlook we continue to expect that the recovery will make further headway this year and next – but the pace will be sluggish.”

He also went on to say that the economy is ‘battling headwinds’ from necessary government cuts and household budgets. John Cridland believes that the Chancellors plans were the right ones, the methods to reduce the deficit were imperative to stabilising the economy.

GDP growth rate is predicted to be 1.7% and growth expected to be around 2.2% for 2012, Recent reports have outlined that businesses are increasingly optimistic about the economy and sales in the UK services sector have risen to the highest level in over a year.

The CBI also predicted that domestic spending will increase as wages rise and inflation falls owing to wage freezes since the start of the recession.

Source: Pareto.co.uk, Tuesday 10th May 2011