"We need to see a full-blown rebalancing of our economy, with stronger business investment and trade before we can call a sustainable recovery. We hope that will begin to emerge next year, as the eurozone starts growing again."
He urged the Government to "get behind talented UK businesses" to help them break into new export markets around the globe.
The CBI predicts a slow strengthening of household spending in the second half of this year and through the next, with confidence lifting and better credit conditions.
Better spending power should be supported by a fall-back in inflation, a rise in disposable income and a stable labour market, it forecasts.
Business investment, set to fall 2.8% this year should grow by 7.3% in 2014, the organisation said, with export growth of 0.7% rising to 4.9% - though imports are also expected to go up, from a negative 0.3% this year to a rise of 4.4%.
Unemployment is likely to remain "relatively sticky" over the medium term, falling from 7.8% in 2013 to 7.6% in 2014, as the number of hours worked increases and productivity begins to recover.
The joblessness figure has taken on increased significance after the Bank of England said that, subject to inflation fears, interest rates would remain at historic lows until it fell to 7%.
Stephen Gifford, CBI director of economics, warned that while a gradual increase in UK investment and UK trade was expected, risks remained including from the eurozone and a new regulatory financial environment.
"Meanwhile, emerging markets are facing structural challenges, particularly as China rebalances towards domestic consumption, which indicates muted growth prospects," he added.
