CBI raises UK growth forecasts, expects exports to pick up

CBI, the UK's leading business group, has just officially released its revised forecast for the next few years, providing some pretty encouraging prospects in terms of growth and exports, a media news report on the matter has revealed.

Following a better than expected GDP growth in the third quarter and signs of a pick-up in confidence across a broad range of sectors, including services, construction and manufacturing, the CBI has decided to raise its GDP growth forecast to 1.4% in 2013, up from 1.2% in its previous August estimate.

Additionally, in 2014 and 2015, the CBI expects the recovery to gather pace, forecasting 2.4% GDP growth in 2014 (up slightly from 2.3% in August), rising to 2.6% growth in 2015, with domestic demand supported by increases in business and housing investment and household disposable income.

Furthermore, business investment and exports are forecast to gradually strengthen. Business investment growth is forecast to improve from -4.9% in 2013 to 6.9% in 2014 and 8.3% in 2015. Export growth is expected to increase from 1.3% in 2013 to 3.6% in 2014 and 5.1% in 2015, and the net contribution of trade to GDP growth will increase slightly, though remain relatively muted as domestic demand boosts import growth from 0.3% in 2013 to 2.2% in 2014 and 4.2% in 2015.

John Cridland, CBI Director-General, said: "The UK is now set fair for growth with confidence returning to Britain's entrepreneurs. The recovery that started in the service sector has fanned out to manufacturing and construction, and is shaping up to be more broad-based. The recovery won't be spectacular, just slow and steady, but appears more solid and better-rooted."

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