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Business group cuts economic growth forecast

08 Jun 2015

The Confederation of British Industry (CBI) has reduced its predictions for 2015 UK economic growth from 2.7% to 2.4%.

In the face of uncertainty in the Eurozone, it has also reduced its 2016 forecast from 2.6% to 2.5%. The original forecasts were already indicative of the weakest growth since 2012, but this has been described as a ‘temporary blip’.

According to the CBI, ‘risks to UK growth are tilted on the downside. A messy resolution of the Greek crisis could spark financial market and exchange rate volatility which could spill over in the real economy’.

But, John Cridland, CBI Director-General, stated that this should not get in the way of current Government austerity plans. He said: ‘The overriding duty of a government, to make sure the public finances are in order, has been in poll position on the racing grid for CBI members for the last five years, and is today. They consider that is the most important job for the Government to do and it’s a job that is only half done’.