25-03-2008
CBI confirms gloomy predictions for economic growth
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The Confederation of British Industry (CBI) has announced gloomy predictions for the future growth of the UK economy.
According to the results of the organisation's quarterly outlook, the UK economy is expected to perform at lower than anticipated growth levels of 1.8 per cent. These figures contrast with recent speculation by the chancellor, where it was suggested that the UK economy would grow at a rate of between 1.75 per cent and 2.25 per cent.
The CBI also believes that inflation will reach a high point of 3.2 per cent during the second half of this year. "We are facing a financial shock on a scale not experienced in recent times, which is coming on top of already slower growth," said Richard Lambert, director general of the CBI. "Outside the financial and property sectors, the mood of business is, however, nothing like as gloomy as you might guess from reading today's headlines."
In 2009, the organisation has predicted that the UK economy will grow at a rate of 1.7 per cent.