CBI predicts two per cent growth next year

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%.

7 thoughts on “CBI predicts two per cent growth next year”

  1. Pavlaki says:

    For some read on second part of message missing!

    The demographics of Portugal are definitely food for thought and will have a huge impact on Portugals ability to pay pensions and maintain a health service. A very similar situation exists in Spain and Greece although the biggest factors there appear to be the reversal of the immigration that occurred during the property boom. Huge numbers of legal and illegal Albanians flooded into Greece during the good years and many have now returned home. I have no idea how many but if you add them to Greek unemployment figures then there must have been a massive drop in the number of workers in the country. I really can’t see how Greece is going to afford to pay even the reduced level of pensions they now pay. More cuts coming?

    1. forbin says:

      More cuts coming ?

      well i guess so , sorta reminds me of Blackadder and leaches

      “Doctor: You know the leech comes to us on the highest authority?

      Edmund: Yes. I know that. Dr. Hoffmann of Stuttgart, isn’t it?

      Doctor: That’s right, the great Hoffmann.

      Edmund: Owner of the largest leech farm of Europe.”

      yes more cuts from your local freindly ECB & IMF…. puppets of the banks of Europe and Germany

      Time Portugal left the United State of Europe and thrived

      never mention Iceland…..


      Who doesn’t own the largest popcorn farm in Europe, or anywhere else for that matter 😉

      1. Anonymous says:

        Whose banks were more exposed to Greece, Germany or France ?

        Is the IMF headed by a German or by a French woman ?

        Where did Trichet come from ?

        How about Straus-Kahn ?

      2. Anonymous says:

        Iceland is a poster child for default. But do remember that Iceland’s electric is geothermal, no imported products required. Energy poor countries would suffer more.

      3. forbin says:

        on a sadder note I see that Lord Flashheart has passed away today

        RIP Rik


        1. Anonymous says:

          Hi Forbin

          Let me second that and say RIP Rik Mayall who’s appearance in Blackadder was of the highest class.

  2. Anonymous says:

    Hi Pavlaki

    There was a little bit of relief today on the currency front as the Euro dipped below 1.36 versus the US Dollar and the UK pound pushed into the mid 1.23s. But that is just one day of course and Portugal could do with a solid month of such moves. As it is the new ECB policy has had only a very minor weakening effect so far.

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