financial reports released by CBI warns that in coming two years, UK economic
growth will rise slowly and the economy has to struggle for more years to
overcome recession. The CBI has further added that though there will be growth
like economic position of UK, it will remain lackluster especially outside of
the capital. The reports warn that UK would face the results of deep economic
crisis of four years in coming years also. New economic background of UK has
been changed in current year and it is slow in compare of normal growth rate of
years before recession period.
feel that there will be moderate growth rate as seen in previous years or
maximum of two percent growth can be recorded and will be considered as healthy
economic growth. Lending business of UK has also been affected due to low
economic situation. Traditional loan options have decreases but modern
approaches like logbook loans or
personal payday loans have been used by consumers despite of higher rates.
director General John Cridland has added that new economic situation will be
normal though there is steady growth but situation will be better than a decade
ago when no growth was recorded. According to CBI predictions there will be no
growth in this year even after one percent bounce back which helps to overcome
recession in UK economy in third quarter of the year. CBI has expected to see
1.4 percent of growth rate in 2013 and little improvement in following year.
CBI has also said that inflation rate can rise slightly again as based on the
financial study. The higher rise may go up to 2.8 percent in around six month
period as results of higher food prices and utility bills. First six month of
2013 will also see slighter rise in unemployment whereas the unemployment rate
will decrease in last six months of 2013 and further in 2014.