13th May 2013
The Confederation of British Industry (CBI) is forecasting economic growth of 2% for next year, with quarter-on-quarter growth to ranging between 0.5% and 0.6%.
As for the rest of 2013, the business lobby predicts GDP growth of 1% in 2013, unchanged from its previous forecast after official first quarter figures came in line with its expectations. Quarter-on-quarter growth is expected to gather pace gradually and 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.
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.
“In terms of job numbers, the CBI is forecasting unemployment to see a small up-tick in 2013 to 2.58 million but it expects this to pull back to circa 2.51m in 2014. In addition it forecasts that inflation is expected to peak in the second quarter of 2013, at 3.1%, before starting to fall steadily for the rest of the year though remaining above target throughout 2014, at 2.5%.