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CBI upbeat about recovery but calls for more credit

Microscope contributor


A consensus is building that the recession is going to be less severe than had been feared and as a result hundreds of thousands of jobs could be saved.

The latest to add its voice to the growing chorus of optimism is the CBI, which has stated that the recession will be shorter than expected and 200,000 jobs will be saved as a result.

The business group has revised its forecasts which it made in April when it predicted there would be no growth this year and unemployment would hit 3.25m.

Although the CBI is stating that there will still be no real recovery until next year the prognosis for the rest of 2009 is not as bleak as previously expected.

"The harshest period of the recession looks to be behind is, the economy is stablising and this should continue during the second half of this year," said Richard Lambert, CBI, director-general in a statement.

He echoed views expressed by Avnet's CEO Roy Vallee who said last week that the road back to growth would be a slow and long one.

"The return to growth is likely to be a slow and gradual one; difficult credit conditions are still affecting business behaviour," added Lambert.

He said that the key to a return to better trading conditions was a return of confidence and until the green shoots really pushed through "the government must do everything it can to help firms get access to credit".

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