CBI raises Britain growth forecasts

The British economy is set to expand quicker than previously expected, according to the Confederation of British Industry (CBI). Growth forecasts for both this year and 2013 were raised by the lobby group, as strong GDP figures for the third quarter helped boost expectations. It is now expected the economy will flat line for this year, instead of shrinking by 0.3%, whilst 1.4% growth is anticipated for 2013, rather than 1.2%. CBI Director General, John Cridland, indicated that fears that the UK will see a decade of stagnation, much like in Japan during the 1990s, were being eased by improved economic data. “I think there is a ‘new normal’ here, but growth is growth,” he said. “And 2% growth, if we can get there in 2014, can be a good trajectory for the UK.” It was also predicted that EU politicians will be able to reign in the eurozone crisis and keep the shared currency region together, as interest rates are expected to begin rising later in 2014 in correlation with inflation drifting towards the Government’s 2% target.