This morning’s economic update from the Confederation of British Industry doesn’t make for cheery reading – but it could be worse. The organisation forecasts that the combination of high prices and low business investment will see the UK in recession throughout next year. Having previously predicted a 1 per cent rise in GDP next year, the CBI now expects a 0.4 per cent contraction. Meanwhile, the organisation’s economists expect average inflation over the course of the year to be more than three times the Bank of England’s target of 2 per cent.
It’s by no means good news – but compared with other recent forecasts for the UK economy, it’s the closest we might get. The CBI’s predictions are on the optimistic side of the trials the economy will have to face over the next few years.
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