The UK’s economy will grow more slowly than previously expected, according to the latest data from the Confederation of British Industry (CBI).
The CBI cut its forecasts for economic growth to 6.9% in 2021 and 5.1% in 2022 from previous estimates of 8.2% and 6.1%.
The business group said that short-term headwinds – including rising costs and shortages – have grown since the business group’s previous forecast in June. Longer-term challenges, notably persistently poor productivity, underline the need for a booster for business investment to support sustainable growth.
Tony Danker, Director General of the CBI, said: ‘The challenge for 1 January is now very clear for the UK economy. Significant headwinds and rising costs of living threaten the extent of recovery and prospects for economic success. These hurdles for firms will provide a major test for government – can they foster sustainable UK investment and growth?
‘The UK’s New Year resolution must be to give firms the confidence to go for growth. We should be raising our sights on the economy’s potential and seizing the moment.’