It could be goodbye to recession for the time being with an influential business organisation forecasting 1% growth this year and a pick up next.

The CBI expects rising quarterly growth in 2013 - 0.3% in the second quarter to June, 0.4% in the third and 0.4% in the fourth.

But in 2014, the CBI anticipates 2% growth, with quarter-on-quarter growth ranging between 0.5% and 0.6%.

It acknowledges recent economic data has been more promising, but accepts clear challenges remain at home and abroad.

CBI director-general John Cridland said: "The UK economy is moving from flat to growth. Although recent data suggests rising business confidence, the economic climate remains tough, hampering demand here and overseas.

"Meanwhile, consumers remain under pressure, as inflation continues to outstrip wage growth.

"Now the government needs to pick up the baton and deliver on promises to get finance to firms, cut red tape and help drive up exports."

The CBI expects a small rise in unemployment this year to 2.58million before falling slightly to 2.51million in 2014.

Inflation is expected to peak in the second quarter of 2013 (3.1%) before starting to fall steadily for the rest of the year though remaining above target throughout 2014 (2.5%).

Uncertainty in the Eurozone and the muted international outlook is limiting business investment intentions this year. Business investment growth of just 3.3% is forecast this year, but is expected to pick up more significantly in 2014 as global conditions improve (6.3%).

The CBI said Eurozone growth had a negative impact on the UK's export prospects, with a small rise in growth (0.4%). But 2014 could see 5% growth.

It expects household spending to remain subdued with weak wage growth and a small rise in unemployment expected. However, the CBI expects improving confidence, lower inflation and improving credit conditions to support a gradual improvement in household consumption, with growth rising from 1.3% this year to 1.8% in 2014.