Home > General Financial News > CBI: Strong economic growth 2007

CBI: Strong economic growth 2007

Published On 15 March 2007 at 10:28:51

The UK economy will grow faster than anticipated this year, according to the Confederation of British Industry (CBI).

Healthy growth in consumer spending and a sustained pick-up in business investment will result in the economy performing much better in 2007 than had been previously thought, according to the report.

CBI chief executive Ian McCafferty said: "The economy will enjoy better than expected growth this year as consumers continue to spend and businesses invest in their companies.

"Our economic forecast shows the economy is in good shape at the moment with above-average growth this year and a good outlook for the year after," he added.

In its quarterly economic forecast the CBI predicted a 2.9 per cent growth in 2007, which is ahead of its previous 2.7 per cent forecast. In his pre-Budget report in December, Gordon Brown forecast growth this year of between 2.75 per cent and 3.25 per cent.

The CBI report also suggests the Bank of England is likely to keep a "tight grip" on monetary policy, despite a predicted fall in inflation. It expects the Bank of England to raise rates once more to 5.5 per cent and remain at that rate throughout 2008.

The economic forecast also anticipated that consumer spending will grow by 2.6 per cent in 2007.

 

Related General Financial News:

• FSB criticises government policies on SME tax
  17 May 2007 at 11:17:06
  The Federation of Small Businesses (FSB) has slammed the government's taxation policy, saying that it harms small and medium-sized enterprises (SMEs) in the UK.
• Business leaders cautiously acknowledge rate rise
  10 May 2007 at 12:55:37
  Business leaders acknowledged that today's (May 10th) decision to increase interest rates by 0.25 per cent to 5.5 per cent was probably needed, but have urged caution in the future.
• SMEs 'throwing away free money'
  9 May 2007 at 16:19:56
  Small and medium-sized enterprises (SMEs) are still missing out on financially lucrative research and development (R&D) tax relief, KPMG has suggested.
• Business insolvencies fall
  9 May 2007 at 10:57:48
  Fewer companies - including small and medium-sized enterprises (SMEs) - went into liquidation in the first quarter of the year, new figures suggest.
• BCC: 'Keep up the good work MPC'
  8 May 2007 at 08:53:16
  Ahead of this week's interest decision, the British Chamber of Commerce (BCC) has praised what the Monetary Policy Committee (MPC) has achieved in the last decade.
• Regulator gets tough on financial SMEs
  16 April 2007 at 08:57:55
  A regulator which monitors the activity of firms working in the financial services sector has revealed that it plans to focus its attention on the UK's small and medium-sized enterprises (SMEs).
• Base Rate remains at 5.25 per cent for another month
  5 April 2007 at 13:00:04
  In a move which is likely to please small and medium-sized businesses with extensive borrowing, the Bank of England has announced that interest rates will remain unchanged in April.