The business group CBI has today said that it believes the recession faced by the UK will be tougher and longer than first thought. That isn’t the kind of news that people wanted to hear especially as Christmas is around the corner. They believe that in 2009 the economy will shrink by 1.7% which is a dramatic rise to what they predicted in September suggesting that the economy would only shrink by 0.3%.
The group has also said that they believe unemployment will increase to 2.9 million by 2010 compared to the current figure of 1.8 million. The government have defended their actions of increasing borrowing to try and boost the economy. The government has said that although they didn’t create the recession they will take every step to try and make it as short and painless as possible.
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