the business ladder

Ernst & Young ITEM Club, the economic forecasting body, has issued a more encouraging report on the state of the UK economy.

In contrast to recent fears amongst many of a possible ‘double-dip’ recession, the study instead suggests a rise in Gross Domestic Product (GDP) of 1.4% in 2010 and 2.2% in 2011.

For the troubled property sales market, the group’s prediction is that house prices will fall by only 5% next year.

However, this more upbeat set of forecasts came with the caveat that the recovery would stall slightly in the coming months, with real, noticeable improvement only starting to appear late next year.

The economic forecasting group also warned that people would face personal financial difficulties in 2011 with wages rising below the rate of inflation and job cuts in the public sector impacting on the private sector.

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