Rising yields expose global fiscal strains, with the UK under sharper pressure
04 Sep 2025, 7 min read
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Our latest economic forecast
18 June 2025
CBI Principal Economist, Martin Sartorius, looks at the road ahead for the UK economy.
Our latest forecast expects that UK economic momentum will remain modest, with GDP growing by 1.2% in 2025 and 1.0% in 2026. Household spending is the main driver of growth over our forecast - supported by real incomes gains and lower interest rates - but higher labour costs and global economic uncertainty will weigh on business investment.
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