Crisis-torn CBI becomes latest forecaster to admit it was far too pessimistic about UK outlook
In charge: The new boss, Rain Newton-Smith, will compete against 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 outlook.
As the business lobby reels from a sex and drug scandal, it now said it expects the economy to grow 0.4 percent this year and 1.8 percent in 2024.
That compares to a previous forecast of a 0.4 percent slump in 2023, followed by 1.6 percent growth in 2024.
The upgrades mirror those of the IMF, OECD and UK Chambers of Commerce.
The CBI said that while it no longer expects a mild recession, inflation is still higher than forecast.
Alpesh Paleja, chief economist at the CBI, said: “Despite slightly better growth prospects, this year will be another difficult year for households.
“Another year of high, albeit declining, inflation will weigh on real incomes and weigh on corporate earnings for consumer-focused companies.”
It comes because the CBI’s new boss, Rain Newton-Smith, will face MPs on the Business Select Committee tomorrow to explain plans for cleaning up the organization.