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24/05/2002
CBI predicts eventual recovery in UK economy
The Confederation of British Industry (CBI) has predicted that the UK economy will make a "gradual but slow" recovery.
The latest figures released from the organisation suggest GDP growth of 1.7% during 2002 compared to 2.2% last year, a minor downward revision of 0.1 per cent from its previous forecast in February. However, the CBI believes growth will rise to 2.7 per cent in 2003, slightly below the consensus forecast of 2.8 per cent.
The CBI also points to a re-balancing of the two-speed economy, as global growth boosts exports while consumer spending enters a slowdown.
Ian McCafferty, CBI Chief Economic Adviser, said: "The UK is on course for a gradual but slow recovery, even though firms have scaled back global growth expectations. Slowing consumer spending should help keep inflation on target while the pick up in world growth into 2003 should make life easier for exporters."
However, he added: "Looking further out, we have just had a watershed Budget that has raised doubts about long-term prospects for employment, growth and government revenues.
"How will employers and employees respond to NIC increases? Will the Chancellor's growth and revenue projections be met? To what extent will the increased public sector activity crowd out the private sector? How these pan out will be vital to the medium-term outlook for the economy."
(CL)
The latest figures released from the organisation suggest GDP growth of 1.7% during 2002 compared to 2.2% last year, a minor downward revision of 0.1 per cent from its previous forecast in February. However, the CBI believes growth will rise to 2.7 per cent in 2003, slightly below the consensus forecast of 2.8 per cent.
The CBI also points to a re-balancing of the two-speed economy, as global growth boosts exports while consumer spending enters a slowdown.
Ian McCafferty, CBI Chief Economic Adviser, said: "The UK is on course for a gradual but slow recovery, even though firms have scaled back global growth expectations. Slowing consumer spending should help keep inflation on target while the pick up in world growth into 2003 should make life easier for exporters."
However, he added: "Looking further out, we have just had a watershed Budget that has raised doubts about long-term prospects for employment, growth and government revenues.
"How will employers and employees respond to NIC increases? Will the Chancellor's growth and revenue projections be met? To what extent will the increased public sector activity crowd out the private sector? How these pan out will be vital to the medium-term outlook for the economy."
(CL)
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UK house prices set to beat growth expectations
UK mortgage lender Nationwide has said that house prices may beat growth expectations for the year ahead. Their expectations were made after their monthly property market review said that average house prices grew by 1.6 per cent in February compared to the previous month, and by 14 per cent on the year.
UK house prices set to beat growth expectations
UK mortgage lender Nationwide has said that house prices may beat growth expectations for the year ahead. Their expectations were made after their monthly property market review said that average house prices grew by 1.6 per cent in February compared to the previous month, and by 14 per cent on the year.
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Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
