CBI: U.K. Economy to Grow 2.6% in 2014

The U.K. economy is forecast to grow 2.6% this year, supported by an unemployment rate of 7% or below throughout the whole 12 months and an increase in business investment, the Confederation of British Industry said Tuesday.

The business group’s economic expectations are broadly in line with the latest estimate from a range of forecasters. The CBI also said that growth is moving toward a sustainable path and isn’t based on debt growth but rising employment and earnings and business investment.

The forecasts show a modest upward revision to gross domestic product growth expectations in 2014 from 2.4% in its previous forecast, while unemployment is also more positive. Another key change is real earnings, with consumer price inflation now expected to rise at an average pace of 1.9% in 2014—compared with the previous forecast of 2.5%—earnings growth should surpass inflation sometime in the second quarter of this year.

WSJ

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.