The UK economy will continue to grow at a “sluggish rate” this year, according to the latest release from the Confederation of British Industry. The lobbying agency’s economic report predicts the economy will grow by just 1.3 per cent this year but will improve in 2012 with a 2.2 per cent growth rate. The Office of National Statistics recorded a disappointing 0.2 per cent growth in GDP last week. The CBI has predicted the UK economy will be boosted by growing exports over the next year. Export growth of 7.7 per cent is expected in 2011 and 6.9 per cent in 2012.
Investment growth of 3.7% is expected in 2011, which should rise to “historically strong levels” of 9.3 per cent in 2012. CBI director general John Cridland :”It may be a lacklustre recovery, but with solid net trade contributions and the positive impact of business investment, the UK will remain on a growth track.”
The report also predicts the UK will suffer from weak wage growth for the remainder of 2011 and that unemployment is expected to climb to a peak of 2.5m by the fourth quarter.