The economy will take years to recover

It is likely to take five years for the UK economy to completely recover, people seeking the best savings interest rates have been told.

According to the Confederation of British Industry's CBI latest economic forecast, the UK economy will continue to grow at a sluggish rate in 2011 and pick up modestly in 2012.

Tony Dolphin, senior economist and associate director for economic policy at the Institute for Public Policy Research IPPR, said that he agreed with this prediction.

He explained that the forecast is in line with other current outlooks for the UK economy and reflect the tough conditions for British exporters.

"It is going to take us at least a couple more years to get back to the level of output we were at before the recession, and it is going to take a few more years after that before we can say that the economy has recovered and unemployment has fallen and that we're using all of our resources again," Mr Dolphin said.

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2011-08-03 13:07:26 © Moneyextra.com