Popup Banner Revised

Join Our Exclusive Webinar!

Research Project Writing: Top Tips & Hints

Wednesday 29th May 2024, 2:00 PM (BST)

UK GDP forecast to grow by 2.6%

UK GDP forecast to grow by 2.6%

The Confederation of British Industry (CBI) has claimed that increases in productivity, household spending, and business investment means UK GDP will see stronger growth than previously anticipated.

This has led the business lobby group to upgrade its forecast to 2.6% for the year.


The increase from 2.4% in June is joined by an updated expectation for next year, with the organisation now predicting growth of 2.8% in 2016.

Rain Newton-Smith, the CBI’s director of economics, said: “Strong domestic demand and upbeat official data since our last forecast has boosted our outlook for 2015.”

“We expect this strength to continue into next year,” he added.

The forecast for the UK economy is in line with other private sector predictions, although still less than the 2.8% figure for this year predicted by the Bank of England.

On the other hand, it is higher than the 2.4% announced by the Office for Budget Responsibility in the recent budget.

Healthy outlook

According to the CBI business investment is expected to “remain healthy”, with surveys predicting significant capital spending plans from firms already in place for the months ahead.

The group's predictions for total business spending for 2015 see a rise of 6.2%, with manufacturing fixed investment benefiting from a 12.6% growth level.

The CBI's rosy outlook is based around domestic demand rather than other economies.

Outgoing Director General John Cridland said: “The strong pound is hampering our competitiveness abroad and growth in the Eurozone, our biggest trading partner, will remain subdued for the foreseeable future, particularly given renewed uncertainty.”

Other News

The impact of the Brexit deal on the accountancy sector

After months of uncertainty and political wrangling, a Brexit deal was finally announced on Christmas Eve 2020. The deal includes…

5 Essential elements of a winning business development plan

The first step to building or expanding a business is creating a concrete business development plan. Entrepreneurs will find plenty…

How strategic business planning can help you through 2020?

Every business operates with the goal of growth, but only a few manage to beat the competition at every curve.…

Back to top