05 Dec 2017
The Confederation of British Industry (CBI) has stated that economic growth in the UK is on course to remain ‘steady, but subdued’ over the next couple of years.
The business group said that 2017 has seen ‘tepid growth’, and predicts that Gross Domestic Product (GDP) will grow at a rate of 1.5% in 2017, 1.5% in 2018 and 1.3% in 2019.
It also predicts quarterly GDP growth of 0.3% up to the end of 2019.
Commenting on the forecasts, Rain Newton-Smith, Chief Economist at the CBI, said: ‘After a timid 2017, UK economic growth is set to remain steady but sluggish, with less pep than we’ve seen over the past few years.
‘We expect domestic demand to remain soft. Household spending will remain under pressure from squeezed real wages and Brexit uncertainty will weigh on business investment.’
The CBI called for the government to make progress in its Brexit negotiations with the EU, and urged for clarity in regard to transitional arrangements.