UK economy ‘to start improving’

The UK economy may be officially back in recession, but matters should soon pick up.

That was the upbeat prediction of the Confederation of British…

The UK economy may be officially back in recession, but matters should soon pick up.

That was the upbeat prediction of the Confederation of British Industry (CBI), which has predicted the second half of 2012 will see some growth and 2013 will witness the economy expanding by two per cent.

Lower inflation and the Olympics are tipped to impact positively on growth, with investment also set to rise.

However, those in debt and struggling to pay through being out of work may still find the going hard, as unemployment is predicted to rise to a peak of 2.86 million in early 2013 before it starts to fall again.

CBI director-general John Cridland also warned that the economy still faces "a number of significant challenges," such as the eurozone crisis and rising oil prices.

Upcoming increases in unemployment will include job loses in the financial sector, with recent announcements of redundancies at HSBC, Clydesdale and Yorkshire banks.

By James Francis

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