UK Economy Gets a Rousing Boost as Elections Loom
With the general election just weeks away, all eyes turn toward the UK’s economic heartbeat. Luckily, the latest CBI forecast tells a story of recovery and subtle optimism.
What the Numbers Say
- GDP Growth: After a sluggish 0.1% last year, the economy is slated to pick up to 1.9% in 2025.
- Consumer Spending: The star of the show, expected to jump 0.8% in 2024 and a solid 2.5% by 2025.
- Business Investment: A dip of 0.2% in 2024 but a hopeful rebound of 1.8% in 2025.
- Inflation: Will slide to the Bank’s 2% band by Q2 2024, briefly rev up later that year, then settle again around 2% in 2025.
- Interest Rates: Expect the Bank of England to cut rates in August, with a terminal stand at 3.5% by Q2 2025.
Why People’re Brewing Coffee Instead of Crying
The pandemic grip and Ukraine war still feel like a stubborn itch, but inflation is finally easing, and wages are rising. People’ll feel the lift from higher real incomes, cushioning against last year’s price inflation spike and higher borrowing costs.
CBI Chief Economist Louise Hellem Speaks
“It’s a breath of fresh air to see the outlook improving after a tough 2023,” Hellem says. “We can’t get complacent. If we want sustainable growth, we must tackle productivity head-on.
The Business Manifesto offers a roadmap: a cutting‑edge trade strategy, a Net‑Zero Investment Plan, and more backing for AI—especially where it can turbo‑charge productivity.
With the election on the horizon, parties have a golden chance to put the economy front and centre, using their platforms to spur long‑term prosperity.
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