CBI predicts slower growth as dark cloud of uncertainty looms
The UK economy is expected to continue to grow – but at a slower rate – through 2016 and 2017, but there are signs that global economic risks, including uncertainty ahead of the EU Referendum, are starting to weigh on investment plans. These are the key findings of the latest CBI economic forecast.
The leading business group’s latest quarterly forecast predicts that the UK will see 2.0% GDP growth in both 2016 and 2017, both of which are downgrades from its last forecast in February (2016: 2.3%, 2017: 2.1%).
Growth is again expected to be driven by household spending and investment, but the deterioration in the global economic outlook, including weaker prospects for China and other emerging markets, continues to represent a major challenge.