CBI Forecasts 0.4% GDP Growth in 2023, 1.8% in 2024 with Inflation Easing

  • UK economy expected to grow amid increased investment
  • CBI forecasts 0.4% growth in GDP for 2023, 1.8% in 2024
  • Inflation expected to ease, particularly food price inflation
  • Business investment to return to pre-COVID levels by 2024
  • Productivity predicted to be sluggish compared to historical trends
  • UK underperforming in business investment and trade intensity

The Confederation of British Industry (CBI) has upgraded its economic forecast for the UK, predicting growth amid increased investment and a decrease in inflation. The CBI expects the UK economy to grow by 0.4% this year and 1.8% in 2024, with business investment returning to pre-COVID levels by the end of 2024. Inflation is expected to ease, particularly food price inflation, but remains a concern due to persistent cost pressures and a tight labor market. Productivity growth is predicted to be slower than historical trends.

Factuality Level: 9
Factuality Justification: The article provides accurate information from the CBI’s Economic Forecast, cites specific numbers for GDP growth, inflation rates, and interest rate predictions, and includes expert quotes that support the overall message. It also acknowledges challenges faced by businesses and households. The information is relevant to the topic of economic forecasting and does not include sensationalism or personal opinions presented as facts.
Noise Level: 7
Noise Justification: The article provides a relatively informative analysis of the UK economy’s performance and forecasts for the near future, but it contains some repetitive information and uses phrases that may not add significant value to the overall understanding of the topic. It also includes a few irrelevant details about inflation and cost pressures which might be better addressed in a separate discussion.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses GDP growth, inflation, interest rates, and investment intentions which impact financial markets and companies.
Financial Rating Justification: The article mentions economic forecasts, Bank of England’s interest rate decisions, and the impact on businesses and households. It also highlights the importance of creating a favorable business environment to boost investment and productivity, which directly affects financial markets and companies.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.

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