The CBI has said today that its economic forecast for Britain is changing from being flat to a position of growth, which could see an end to the country’s period of recession.
The CBI has forecast that the GDP (gross domestic product) will grow by 1 per cent during 2013 and that it should climb by 2 per cent during 2014. The forecasts by the CBI are adding to the growing number of signs that the economy could finally be recovering.
The ONS (Office of National Statistics) revised its figures for last year, the new figures indicate that Britain actually managed to avoid the double dip recession.
Although the news is great, the CBI have warned that there are still a lot of challenges ahead on the road to recovery. John Cridland, Boss at the CBI said that: ‘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.’
The CBI also said that household spending is still expected to be quite low due to consumer confidence and that wage growth was weak and that unemployment could rise.
Once confidence rises in the economy and inflation falls a better credit climate should aid growth into 2014 with growth rising to 1.8 per cent.