British businesses to face a ‘difficult’ 2008

British businesses are likely to experience a ‘difficult year’ as experts predict a slowdown in economic growth in 2008, according to the Confederation of British Industry (CBI).

In his New Year message CBI director general, Richard Lambert, held the rising cost of energy prices and the global credit crunch responsible for the gloomy outlook, although he said the UK could expect a ‘soft landing’ regardless of these ‘challenges’.

He declared that a ‘new phase’ in the structure of the global economy has now been entered, with the economic ‘balance of power’ shifting to the East.

To succeed in this changing environment, Mr Lambert said the UK needed to focus on the ‘absolute necessity of raising the national skills and knowledge base at every level.’

The CBI recently downgraded its UK growth forecast for 2008 to 2%, with a similar projection made for 2009.

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