With the cost-of-living crunch showing no sign of abating, airports struggling to cope, national rail strikes on the horizon and 'Groundhog Day' battles with the EU over the Northern Ireland Protocol, there is a real risk that the economy stays a ‘distant second to politics’ this summer, according to the CBI report.
Growth has been downgraded to 1 per cent in 2023 as consumer spending weakens: real household incomes are predicted to fall at their fastest pace on record since the 1950s. With this impending household recession, investment in business is even more essential, the CBI said.
The CBI’s outlook suggests that growth will soften as household spending turns downwards amid dented business and consumer confidence. As a result, the CBI has downgraded its GDP growth outlook significantly, to 3.7 per cent in 2022 (down from the previous estimate of 5.1 per cent) and 1.0 per cent in 2023 (down from 3.0 per cent).
High inflation is the primary...