CBI: 2% growth next year
THE UK economy will continue to grow throughout this year, with GDP growth expected to pick up in 2014, according to the Confederation of British Industry’s (CBI) latest economic forecast.
But while recent economic data has been more promising, clear challenges remain both at home and abroad, the UK’s leading business group warned.
The CBI is forecasting GDP growth of 1% in 2013, unchanged from its previous forecast after official first quarter figures were in line with its expectations.
Quarter-on-quarter growth is expected to gather pace gradually. The CBI is forecasting growth of 0.3% in the second quarter, 0.4% in the third and 0.4% in the final quarter of 2013. In 2014, the CBI is expecting growth of 2%, with quarter-on-quarter growth to range between 0.5% and 0.6%.
John Cridland, CBI director general, 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 is forecasting that unemployment will see a small rise in 2013 to 2.58m before receding slightly to 2.5m in 2014.
