Britain facing slow growth in 2010

Britain's biggest employers' organisation said yesterday that the country's economy would finally emerge from recession by the end of the year, but faces a "fragile path of slow growth" ahead.

The Confederation of British Industry predicted that the British economy would grow by 0.5 per cent in the final quarter of this year, after six quarters of recession.

Britain is the last major world power mired in recession, official data showed last month.

The CBI forecast growth of 1.2 per cent next year and 2.5 per cent in 2011.

However, British gross domestic product will still not have returned to its pre-recession level by the end of 2011, it predicted.

"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," said CBI deputy director general John Cridland.

"In the spring, many staff will face another cycle of wage freezes and job losses will continue rising until the autumn.