(PTI): The UK economy has begun to emerge from recession but 2010 will be economically a tough year, Britain’s leading business association says.

According to the Confederation of British Industry (CBI), the country’s gross domestic product (GDP) will rise by 0.3 percent between July and September, from the previous three months, and will grow by 0.4 percent in the last quarter of 2009.

Growth in the three months ending September would follow five consecutive quarters of contraction with GDP falling by a cumulative 5.5 percent.

The British business group added in its report that it was hard to predict a fast growth due to a lack of demand.

CBI forecasts a total contraction of 4.3 percent in 2009 while economic growth in 2010 will be limited to 0.9 percent.

Even when the economy technically emerges from recession, ‘it’s not going to feel very different to three months ago’, CBI director-general Richard Lambert told the BBC.

“One major reason for this is that unemployment is expected to keep rising,” he added.

The number of unemployed British people reached 2.47 million in September – its highest level in 14 years.

When asked whether military action was “inconceivable”, he said, “I always say to people look at what I do say, not at what I don’t say and what I do say is that we are 100% focused on a diplomatic resolution of this question.”

Amid revelations about Iran’s newly disclosed nuclear facility, the leaders of the United States, France and Britain on Friday accused the country of deception in its pursuit of nuclear energy.

However, Iranian President Mahmoud Ahmadinejad rejected the western accusations, saying the plant was perfectly legal and not in breach of the IAEA rules.

“According to the IAEA rules, countries must inform the agency 6 months ahead of the gas injection in their uranium enrichment plants. We have done it 18 months ahead and this should be appreciated not condemned,” the president said.