Despite the fact that the British economy will finally be able to pull itself out of the recession officially in the last quarter of the 2009 financial year, its performance will be much less stronger and lower than what the Government is currently pegging, a report by the CBI is all set to warn.
Britain's biggest business group is estimating a much weaker economic recovery over the coming year, which will be followed by two consecutive years of weak and disappointing growth. There will be "moderate" improvements in "employment and wage settlements".
The predictions by CBI are much lower than those which are being resounded by Chancellor Alistair Darling, and were a strong basis of his Pre-Budget Report which was released two weeks ago.
"The outlook is brightening as the global economy finds its feet, although we will need to keep our nerve during early 2010 and there is no sign of a clear driver of strong economic growth. In the spring, many staff will face another cycle of wage freezes, and job losses will continue rising until the autumn", said John Cridland, the CBI's Deputy Director General.
The business group, for the coming year, has estimated a growth of 1.2%, which is near the bottom range of the 1-1.5% growth, has been pegged by Mr. Darling, and subsequently, for 2011, the growth has been estimated to be around 2.5%.