CBI Lead Economist, Alpesh Paleja, looks at the road ahead for the UK economy.
UK outlook: shifting headwinds
Our latest economic forecast shows that the UK is set for another year of weak growth over 2024. This largely reflects continued, but shifting, headwinds facing businesses and consumers. While we expect inflation to fall back further, household spending will be constrained by the impact of higher interest rates feeding through, and a modest loosening in the labour market. Weak growth also weighs on business and housing investment, further dragging on activity. While we expect some recovery over 2025, it should be noted that GDP growth remains below its average in pre-pandemic years. And the continued underperformance of UK productivity highlights the need to maintain focus on boosting the economy’s longer-term growth prospects.
GDP
Growth to remain lacklustre over 2024
The economy has grown only weakly in the first nine months of this year, continuing the trend of soft underlying momentum seen since t
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