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CBI raises economic growth forecast for 2013

 

The Confederation of British Industry (CBI) has raised its economic growth forecast for 2013 from 1% to 1.2%, amid signs of mounting confidence amongst UK businesses.

 

The higher forecast is double the pace of growth predicted by the Office for Budget Responsibility in March.

 

The lobby group has also revised its growth forecast for 2014 to 2.3% - up from 2% - as disposable income increases and business and housing investment support domestic demand.

 

It added that the Bank of England’s forward guidance on interest rates should aid the recovery in business and consumer confidence.

 

However, the head of the CBI has warned that more rebalancing of the economy is needed.

 

‘The economy has started to gain momentum and confidence is picking up, but it's still early days,’ said CBI director-general John Cridland.

 

He continued; ‘We need to see a full-blown rebalancing of our economy, with stronger business investment and trade, before we can call a sustainable recovery. We hope that will begin to emerge next year, as the eurozone starts growing again.

 

‘The Government needs to get behind talented UK businesses to help them break into new export markets and sell great British products and services around the globe’.