Prepare for Economic Realities: CBI’s 2024 Projections
Discover the Confederation of British Industry’s (CBI) in-depth analysis of the UK’s economic landscape in 2024. In a recent forecast, the CBI paints a realistic picture of the challenges ahead, with consumer spending and economic growth expected to face ongoing hurdles.
Key Takeaways:
- Subdued Growth Continues: Following a modest 0.6% GDP growth in 2023, the CBI projects a slight uptick to 0.8% in 2024 and a more substantial increase to 1.6% in 2025.
- Stagnant Consumer Spending: Despite a predicted 0.4% uptick, consumer spending is set to remain largely unchanged from 2023 levels. Higher interest rates continue to impact household incomes.
- Interest Rates and Borrowing Costs: While the CBI anticipates the Bank of England concluding its interest rate hikes, households are yet to feel the full impact. The Bank rate is expected to hold steady at 5.25% throughout the year.
- Inflation Dynamics: Although the primary inflation rate is forecasted to decrease, it is poised to stay above the Bank of England’s 2% target, reaching 2.5% by the end of 2024.
- Business Investment Outlook: Sluggish growth is expected to contribute to a 5% decline in business investment in 2024.
Insights from CBI Chief Economist, Louise Hellem:
Louise Hellem acknowledges the resilience displayed by businesses and households but emphasizes the challenges ahead. «The 2020s have yet to roar, and businesses are gearing up for another demanding year, with our forecast signaling persistent weak growth in 2024.»
Prepare for the Economic Landscape of 2024 with CBI’s Comprehensive Forecast. Stay Informed, Stay Resilient.