The Confederation of British Industry had downgraded the growth forecast
for the UK economy despite very good employment situations.
According to CBI, the UK’s economic growth may only reach 2.4% and
2.5% in 2015 and 2016 respectively. These forecasts have a 0.1% difference from
the initial predicitons.
CBI, in line with the Bank of England, insist that the downgrade is
due to Britain’s slowdown due to uncertain public finances. However CBI agrees
that the economic downturn is due to a “blip”, a mistake that will not be
repeated.
CBI Director John Cridland believes the UK economic recovery is on
track as employees feel positive.
To ensure safeguards, the OECD had urged the UK government to spread
budget tightening for a longer period to ensure growth. However, Cridland does
not agree with the recommendation:
“We don't want the government to ease off on austerity. We
want the government to continue to tackle the deficit in the public finances
but to do so in an intelligent way."
The UK had five years of spending cuts. He urged the government to
focus on “more imaginative” public service reforms.
