
The Confederation of British Industry (CBI) Monday uplifted Britain's economic growth forecasts for this year and next, claiming the country is on the trace of "twin-engined" recovery.
The British lobbying body is forecasting 2.6 percent growth for 2015 and 2.8 percent for 2016, up from its June's projections of 2.4 percent and 2.5 percent respectively.
The CBI said the upgrade is due to a combination of factors, including signs of recovering productivity in the first half of this year feeding through to stronger wage growth. The continued low inflation from falling commodity prices gives a "a welcome boost" to household spending. And business investment is expected to remain healthy, with CBI's surveys indicating robust plans for capital spending.
But it also warned that downside risks to emerging market growth appear to have intensified, British net trade looks set to drag on GDP growth in both 2015 and 2016.
John Cridland, CBI Director-General, said: "We're encouraged by the twin engined-growth of household spending, spurred by stronger wage increases and low inflation, buttressed by business investment. We're also seeing tentative signs of productivity picking up."
Regarding British benchmark interest rate forecast, the CBI said following more hawkish comments from the central bank recently, in combination with a bit more growth momentum, it now expects interest rates to rise to 0.75 percent in the first quarter of 2016, and then rise at a slow pace thereafter.
GMT 15:13 2018 Saturday ,20 January
US 'erred' in supporting WTO membership for China, RussiaGMT 17:22 2018 Thursday ,18 January
US industrial output in 2017 posts biggest gain since 2010GMT 17:12 2018 Thursday ,18 January
No more bonuses for Carillion bosses after UK collapseGMT 17:20 2018 Wednesday ,17 January
EU to remove Panama, South Korea from tax haven blacklistGMT 17:16 2018 Wednesday ,17 January
Citigroup reports steep Q4 losses tied to US tax reformGMT 17:11 2018 Wednesday ,17 January
Pressure rises on British govt over Carillion collapseGMT 17:52 2018 Monday ,15 January
Iran jetliner deal could take longer to complete, Airbus saysGMT 17:44 2018 Monday ,15 January
EU to remove Panama, Korea, UAE, 5 others from tax haven blacklist
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©
Send your comments
Your comment as a visitor