(MENAFN- Khaleej Times) The Confederation of British Industry, or CBI, raised its forecasts for UK economic growth and said it expects business investment and trade to aid the recovery starting next year.
The business lobby sees the economy expanding 1.4 per cent this year and 2.4 per cent in 2014, it said in a quarterly report on Sunday. That's up from 1.2 per cent and 2.3 per cent projected in August.
The London-based group also said that unemployment - which the Bank of England has set as the key indicator for its guidance on policy - will fall to 7.2 per cent by the end of 2015 from its current 7.7 per cent.
"The recovery won't be spectacular, just slow and steady, but appears more solid and better-rooted," CBI director-general John Cridland said. "We're also expecting business investment to pick up over the next two years and beyond, and net trade will begin to make a stronger contribution to growth."
UK growth accelerated to its fastest pace in more than three years in the third quarter as the recovery continued across all main industries. BoE Governor Mark Carney will present new quarterly forecasts on November 13 and some economists say officials may bring forward their projection for when unemployment will reach a seven per cent threshold.
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