Private banks 'will see recovery slow in 2011'

Private banks are likely to see the pace of economic recovery slow in 2011, according to one commercial organisation.

The Confederation of British Industry (CBI) has predicted the UK will continue to pull away from the recession over the next 12 months, but at a slower pace than previously suggested.

For private banks this could signal a dip in activity, as those with personal wealth seek to consolidate their assets and may not look favourably on complex wealth management strategies.

CBI predictions put the rate of economic expansion in 2010 at 1.6 per cent, up from 1.3 per cent at the last report in June.

However, the group has adjusted its projection down for 2011, dropping it from 2.5 per cent at the last forecast to two per cent in the survey released today (September 22nd).

Director-general Richard Lambert remarked: "The degree of uncertainty around the outlook remains high, but our view is that the UK's tentative recovery will be sustained, albeit with weaker levels of growth."

The organisation's recommendations included a government focus on areas of the economy that drive growth, as well as supporting small businesses and a more highly-skilled workforce.  ADNFCR-2318-ID-800076554-ADNFCR