- The Confederation of British Industry (CBI) forecasts a significant downturn for the UK economy, predicting faltering growth and worsening unemployment.
- The CBI anticipates an additional 200,000 people will become unemployed, pushing the jobless rate to 5.5 per cent this year, equating to approximately two million people.
- The organisation has also downgraded its growth projections for the next two years. UK Gross Domestic Product (GDP) is now expected to slow from 1.4 per cent growth last year to 1.1 per cent in 2026, further decelerating to 0.9 per cent in 2027 – a notable reduction from previous forecasts.
- This assessment is largely attributed to the effects of the Middle East conflict, which has pushed inflation above earlier forecasts, while higher energy prices, disrupted supply chains and increased uncertainty for businesses and consumers are all expected to impede economic growth.
- The CBI expects the Bank of England to maintain interest rates at their current level of 3.75 per cent for the remainder of the year.
IN FULL
