In its New Year report the CBI has called on UK businesses to increase their export activity to help the UK re-balance its economy.

The CBI believes that this could boost the UK’s economy by £20 billion over the next eight years.

The organisation is also calling on the private sector to invest £140 billion in the country’s infrastructure to help offset public sector cuts and to stabilise government debt.

The Government has already announced a number of projects in its National Infrastructure Plan including major improvements to the UK’s transport and broadband networks.

These re-balancing measures would help the UK reduce its dependence on debt-driven household and government spending, the CBI’s report suggests.

John Cridland, the CBI Director-General warned: “If we fail, the UK’s debts will continue to grow and our trend growth-rate will remain low. Only through rebalancing can we return growth to long-term sustainable levels.”

Mr Cridland warned that “2012 is going to be a hard road,” a view that is shared by UK businesses according to recent surveys.

According to new research by accountancy firm Deloitte, most companies are pessimistic about the coming year with more than 50 per cent of finance directors expected the UK to fall back into recession.

The monthly Lloyds Bank business barometer also suggests a fall in confidence among smaller companies in December, with around three quarters believing that another recession is likely.

The Financial Times today reported a similar fall in confidence among economists, with the results of a new poll suggesting that the UK economy could deteriorate to levels not seen since 2009, in the face of the continuing debt crisis in the eurozone.

However, only a small minority of the economists surveyed by the Financial Times believed that the Government should back-track on its austerity plan.

Official data has revealed unemployment in Germany dropped to its lowest level in more than 20 years in September.

The country’s unemployment rate fell from August’s rate of 7% to 6.6%.

Unemployment now stands at 2.79 million – the first time since 1992 that the jobless total has been below 2.8 million.

It was also much better than economists had expected.

The country’s unemployment rate continues to fall and its job market has performed much better than in many other countries and many believe it is the result of the “Kurzarbeit” scheme, introduced by the German Government, designed to prevent mass redundancies.

Last year, Germany’s unemployment rate plunged to 7.7% from 8.2% in 2009 as a result of the Government initiative.

Many economists believe that Germany’s economic recovery appears to have enough “domestic stamina” to prevent a recession.”

However, despite the strong data, the economy, which is the euro zone’s largest, continues to suffer amid the ongoing debt crisis.

Germany, which has been regarded as Europe’s powerhouse, has been driving the recovery of the euro zone but a recent slew of weak data has forced many to re-evaluate its assessment of the economy.

Statistics office Destatis recently revealed German exports fell more than expected in July.

According to Destatis, exports fell by 1.8% in July on a monthly basis compared with a 1.2% drop in June. Economists had forecast a 0.1% fall for the month.

The sharp fall in exports will be of grave concern for the country’s Government. Export demand helped to bring Germany out of recession in the second quarter of 2009 – much sooner than many of its counterparts throughout the world.

The Washington-based International Monetary Fund recently lowered its growth forecasts for both Germany and the euro zone this year and next.

It expects Germany’s economy to grow 2.7% this year and 1.3% in 2012.

Official data has revealed unemployment in Germany dropped to its lowest level in more than 20 years in September.

The country’s unemployment rate fell from August’s rate of 7% to 6.6%.

Unemployment now stands at 2.79 million – the first time since 1992 that the jobless total has been below 2.8 million.

It was also much better than economists had expected.

The country’s unemployment rate continues to fall and its job market has performed much better than in many other countries and many believe it is the result of the “Kurzarbeit” scheme, introduced by the German Government, designed to prevent mass redundancies.

Last year, Germany’s unemployment rate plunged to 7.7% from 8.2% in 2009 as a result of the Government initiative.

Many economists believe that Germany’s economic recovery appears to have enough “domestic stamina” to prevent a recession.”

However, despite the strong data, the economy, which is the euro zone’s largest, continues to suffer amid the ongoing debt crisis.

Germany, which has been regarded as Europe’s powerhouse, has been driving the recovery of the euro zone but a recent slew of weak data has forced many to re-evaluate its assessment of the economy.

Statistics office Destatis recently revealed German exports fell more than expected in July.

According to Destatis, exports fell by 1.8% in July on a monthly basis compared with a 1.2% drop in June. Economists had forecast a 0.1% fall for the month.

The sharp fall in exports will be of grave concern for the country’s Government. Export demand helped to bring Germany out of recession in the second quarter of 2009 – much sooner than many of its counterparts throughout the world.

The Washington-based International Monetary Fund recently lowered its growth forecasts for both Germany and the euro zone this year and next.

It expects Germany’s economy to grow 2.7% this year and 1.3% in 2012.

Official data has revealed unemployment in Germany dropped to its lowest level in more than 20 years in September.

The country’s unemployment rate fell from August’s rate of 7% to 6.6%.

Unemployment now stands at 2.79 million – the first time since 1992 that the jobless total has been below 2.8 million.

It was also much better than economists had expected.

The country’s unemployment rate continues to fall and its job market has performed much better than in many other countries and many believe it is the result of the “Kurzarbeit” scheme, introduced by the German Government, designed to prevent mass redundancies.

Last year, Germany’s unemployment rate plunged to 7.7% from 8.2% in 2009 as a result of the Government initiative.

Many economists believe that Germany’s economic recovery appears to have enough “domestic stamina” to prevent a recession.”

However, despite the strong data, the economy, which is the euro zone’s largest, continues to suffer amid the ongoing debt crisis.

Germany, which has been regarded as Europe’s powerhouse, has been driving the recovery of the euro zone but a recent slew of weak data has forced many to re-evaluate its assessment of the economy.

Statistics office Destatis recently revealed German exports fell more than expected in July.

According to Destatis, exports fell by 1.8% in July on a monthly basis compared with a 1.2% drop in June. Economists had forecast a 0.1% fall for the month.

The sharp fall in exports will be of grave concern for the country’s Government. Export demand helped to bring Germany out of recession in the second quarter of 2009 – much sooner than many of its counterparts throughout the world.

The Washington-based International Monetary Fund recently lowered its growth forecasts for both Germany and the euro zone this year and next.

It expects Germany’s economy to grow 2.7% this year and 1.3% in 2012.

Official figures today revealed Japan’s exports rose in August for the first time in six months – suggesting the world’s third largest economy is continuing its recovery from the devastating earthquake and tsunami which struck in March.

According to the Ministry of Finance, exports were 2.8% higher last month on an annual basis but this was much less than the 8% rise expected by analysts.

The figures suggest the strong yen continues to hurt Japan’s manufacturers – it is currently hovering around 76.30 to the US dollar – dangerously close to its post-war high of 75.95 yen seen last month.

The yen has been appreciating for some time as global investors see it as a safe haven at a time of economic uncertainty.

However, it has implications and it is forcing manufacturers to consider relocating and some have even suggested moving their operations overseas.

Exports helped the economy recover from recession earlier than its counterparts more than two years ago but the twin disasters disrupted supply chains and forced some of Japan’s largest exporters to halt production.

In the meantime, imports surged 19.2% on an annual basis, due to hikes in oil prices.

As a result, the economy posted a huge trade deficit of 775.3 billion yen – the biggest since records began in 1979.

Last week, the Cabinet Office revealed the Japanese economy performed worse than originally thought in the April to June period.

Gross Domestic Product (GDP) contracted by 2.1% on an annual basis in the three-month period, compared with an initial estimate of 1.3%.

The economy is currently in recession and has now contracted for three consecutive quarters.

Japan lost its place as the world’s second largest economy to China last year and it faces several headwinds including years of deflation and a mountain of debt.

Debt currently stands at almost twice the country’s annual economic output and is the highest of any industrialised nation.

The Commerce Department has revealed US exports hit an all-time high in July, while imports fell.

According to official figures, exports surged 3.8% to $178 billion (£111 billion) after two months of declines.

The rise in exports was attributed to strong overseas sales of manufactured goods, particularly to countries in Central and South America.

Meanwhile, imports fell 0.2% to $222.8 billion – attributed to the decline in the price of oil reducing the cost of the US’s crude imports.

As a result of the figures, the trade gap fell 13.1% to $44.8 billion.

Meanwhile, US’ politically sensitive trade gap with China swelled 1.1% to $27 billion – the biggest imbalance in almost a year.

President Barack Obama has previously said that he wants to double US exports in the next three years to drive employment so the figures will be a welcome boost.

Yesterday, the President addressed the nation about a plan for job creation. He unveiled a $450 billion (£282 billion) package aimed at boosting the economy and reducing the federal deficit.

The bill includes tax cuts to workers and small businesses to boost job creation.

Mr Obama has previously said job creation is a top priority; continued high unemployment could threaten his prospects for re-election next year.

Last week, the Labor Department revealed the economy added no new jobs last month, which was a surprise after markets had expected 70,000 new jobs.

This represented the first time since 1945 that there has been a zero payrolls figure after 17,000 jobs were added in the private sector last month but these were cancelled out by 17,000 jobs lost in the public sector.

The economic recovery in the US remains sluggish in the face of higher unemployment and a depressed housing market.

In related news, yesterday the latest Beige Book report, published by the Federal Reserve revealed widespread signs that US economic growth continues to slow.

The US central bank has previously said the economy is weaker and that policymakers will explore ways to boost growth and lower unemployment at its policy meeting later this month.

The Cabinet Office has today revealed the world’s third largest economy performed worse than originally thought in the April to June period.

Gross Domestic Product (GDP) contracted by 2.1% on an annual basis in the three-month period, compared with an initial estimate of 1.3%.

The fall was attributed to a cut back on spending by companies amid concerns about a slowing global economy and a strong yen.

Earlier this week, Japanese Finance Minister, Jun Azumi, said he will discuss the threat of the strong yen at the G7 meeting in Marseille, France today.

Meanwhile, figures released today revealed overall investment by businesses fell by 0.9% in the quarter, against 0.2% rise estimated previously.

The economy is currently in recession and has now contracted for three consecutive quarters.

The economy continues to recover from the devastating earthquake and tsunami which struck in March.

A strong yen continues to hurt Japanese manufacturers. Furthermore, the twin disasters disrupted supply chains and forced some of Japan’s largest exporters to halt production.

Exports helped the economy recover from recession earlier than its counterparts two years ago but recent figures have shown exports are slowing.

Yesterday, the Organisation for Economic Cooperation and Development (OECD) said Japan could see economic growth of 4.1% in quarter three but will see zero growth in the final quarter.

However, despite today’s poor figures, which were in line with expectations, economists are optimistic about the future prospects.

Government stimulus spending is expected to boost the recovery efforts in north-eastern Japan, while consumer spending will lead to expansion in the next quarter.

Japan lost its place as the world’s second largest economy to China last year and it faces several headwinds including years of deflation and a mountain of debt.

Debt currently stands at almost twice the country’s annual economic output and is the highest of any industrialised nation.