Now CBI joins the clamour to upgrade UK economic forecast
Crisis-torn CBI becomes latest forecaster to admit it was far too pessimistic about UK’s prospects
In charge: New boss, Rain Newton-Smith, will face MPs on the Business select committee
The crisis-torn CBI has become the latest forecaster to admit it was far too pessimistic about the UK’s prospects.
As the business lobby group reels from a sex and drugs scandal, it said it now expects the economy to grow by 0.4 per cent this year and 1.8 per cent in 2024.
That compares with a previous forecast of a 0.4 per cent slump in 2023 followed by growth of 1.6 per cent in 2024.
The upgrades echo those by the IMF, OECD and British Chambers of Commerce.
The CBI said whilst it no longer expects a mild recession, inflation is still higher than predicted.
Alpesh Paleja, lead economist at the CBI, said: ‘Despite a somewhat better growth outlook, this year will be another difficult one for households.
‘Another year of high, albeit falling, inflation will weigh on real incomes and put pressure on bottom lines for consumer-facing companies.’
It comes as the CBI’s new boss, Rain Newton-Smith, will face MPs on the Business select committee tomorrow to explain plans to clean up the organisation.