Recession tougher and longer than thought

The CBI (Confederation of British Industry) has warned in its latest report that the recession is likely to last for most of 2009, with unemployment peaking at around 2.9 million.

The predictions paint a worse picture than those made in the CBI’s September report, with economic growth also predicted to shrink by 1.7% in 2009 – as opposed to September’s prediction of 0.3% growth.

Inflation is also expected to fall from 4.2% this quarter to 1.7% by the end of 2009, more closely in line with the Bank of England’s 2% target – although it is likely to fall to 1.1% in 2010.

Next year will be followed by a ‘slow recovery’ throughout 2010, according to the report.

A spokesperson for debt management company Gregory Pennington said: “It’s very clear at this time that people really need to take a look at their finances and tackle any debt problems as soon as possible, before economic conditions make it more difficult.

“We advise anyone struggling with debt to seek professional debt advice. Speaking to an expert can make debt management a much less stressful and time-consuming task.”

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.