Economic news

UK set to dodge recession, but big problems remain: CBI

2023.06.11 19:31


© Reuters. FILE PHOTO: People walk through the Canary Wharf financial district of London, Britain, December 7, 2018. REUTERS/Simon Dawson

LONDON (Reuters) – Britain’s economy now looks likely to sidestep recession entirely this year but deep-rooted problems like weak business investment will persist, the Confederation of British Industry trade body said on Monday.

The economy is on course to expand 0.4% this year and 1.8% next year, the CBI said, compared with its previous forecast for a 0.4% contraction followed by growth of 1.6% in 2024.

Falling energy prices, the reopening of China’s economy from COVID-19 restrictions and easing supply chain disruptions were the main reasons for the upgrade, the CBI said.

Other forecasters like the Organisation for Economic Co-operation and Development and International Monetary Fund have also bumped up their growth forecasts for Britain recently.

“While encouraging, there’s no getting away from the fact that this year will be another tough one for both businesses and households,” CBI lead economist Alpesh Paleja said, noting that the Bank of England looks likely to raise interest rates to a peak of 5% by August from 4.5% now.

“It’s also concerning that the UK is underperforming on many of the areas crucial to our long-term prosperity, such as business investment and trade intensity,” he said.

The CBI does not expect business investment – a weak spot for Britain’s economy since the Brexit vote of 2016 – to return to its pre-pandemic level before the end of next year.

“Making our business environment more attractive to firms at home and abroad must be front of mind in the months ahead,” Paleja said.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 95,922.70 1.94%
ethereum
Ethereum (ETH) $ 3,309.79 3.15%
tether
Tether (USDT) $ 1.00 0.07%
solana
Solana (SOL) $ 247.35 3.66%
bnb
BNB (BNB) $ 647.28 1.57%
xrp
XRP (XRP) $ 1.34 10.35%
dogecoin
Dogecoin (DOGE) $ 0.410769 4.31%
usd-coin
USDC (USDC) $ 0.999711 0.06%
cardano
Cardano (ADA) $ 0.966766 8.60%
staked-ether
Lido Staked Ether (STETH) $ 3,310.33 3.35%
tron
TRON (TRX) $ 0.204319 4.55%
avalanche-2
Avalanche (AVAX) $ 39.50 5.92%
the-open-network
Toncoin (TON) $ 6.07 5.93%
shiba-inu
Shiba Inu (SHIB) $ 0.000025 4.35%
stellar
Stellar (XLM) $ 0.475798 7.20%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,919.73 3.23%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 95,669.63 2.14%
polkadot
Polkadot (DOT) $ 8.40 2.45%
chainlink
Chainlink (LINK) $ 16.72 4.94%
bitcoin-cash
Bitcoin Cash (BCH) $ 499.96 1.87%
weth
WETH (WETH) $ 3,308.21 3.33%
sui
Sui (SUI) $ 3.29 5.10%
pepe
Pepe (PEPE) $ 0.000019 6.11%
near
NEAR Protocol (NEAR) $ 6.38 3.23%
leo-token
LEO Token (LEO) $ 8.40 2.45%
litecoin
Litecoin (LTC) $ 94.22 4.65%
aptos
Aptos (APT) $ 11.88 7.32%
uniswap
Uniswap (UNI) $ 10.35 6.01%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,483.02 3.45%
hedera-hashgraph
Hedera (HBAR) $ 0.140129 9.15%
usds
USDS (USDS) $ 1.00 0.28%
internet-computer
Internet Computer (ICP) $ 10.87 5.50%
crypto-com-chain
Cronos (CRO) $ 0.182499 7.93%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.537833 6.25%
ethereum-classic
Ethereum Classic (ETC) $ 27.63 7.13%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.02%
render-token
Render (RENDER) $ 7.42 5.40%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.47 4.34%
kaspa
Kaspa (KAS) $ 0.149016 4.86%
bittensor
Bittensor (TAO) $ 500.95 2.95%
whitebit
WhiteBIT Coin (WBT) $ 24.15 2.29%
dai
Dai (DAI) $ 0.999388 0.10%
arbitrum
Arbitrum (ARB) $ 0.816294 5.49%
celestia
Celestia (TIA) $ 7.79 7.70%
bonk
Bonk (BONK) $ 0.000044 9.29%
mantra-dao
MANTRA (OM) $ 3.63 1.78%
vechain
VeChain (VET) $ 0.040447 3.63%
filecoin
Filecoin (FIL) $ 5.43 1.52%
cosmos
Cosmos Hub (ATOM) $ 8.22 0.32%
okb
OKB (OKB) $ 52.80 3.71%