The Confederation of British Industry (CBI), a leading business organization, said today that the economic recovery in UK in likely to remain slow for the rest of 2010. CBI predicted that the end of economic stimulus measures would impact the growth pace of UK economy.

The organization also forecasted that the consumer spending will be lower this year as the people tend to save more. The employers' group suggested the government to set out a credible plan to reduce its bulging budget deficit.

The Confederation of British Industry made a forecast for the economic growth in all the quarters of year 2010. The group said that it expects a 0.3% growth in the first quarter following by 0.4% and 0.5% growth for the second and remaining quarters of the year respectively. According to CBI, UK economy will recover to the higher growth levels by the end of the next year.

The CBI reduced its outlook for the growth in annual gross domestic product. The group said that it expects a growth of 1% in GDP for 2010 and 2.5% growth in GDP for 2011. Earlier in December, CBI had forecasted a growth of 1.2% in GDP for 2010.

On the other hand, the government expects the GDP to grow between 1% and 1.5% during 2010. The government also sees a 3.5% growth in GDP for 2011 and 2012.