BRITAIN will avoid a recession – as long as Eurozone leaders resolve their crisis by the spring, leading business organisation the Confederation of British Industry (CBI) claimed today.
The Eurozone will experience a mild recession over the winter while Britain’s economy stagnates, according to the CBI’s forecasts.
Economic growth is expected to come in at 0.9 per cent in 2011 and 1.2 per cent in 2012, down from July’s forecasts of 1.3 per cent and 2.2 per cent.
However, as the Eurozone economies are so closely linked with the UK’s, any deeper recession will lead to a corresponding dip in Britain.
Such a danger means the UK should be prepared to increase IMF contributions to help out, said the CBI’s director general John Cridland.