Latest news with #growthforecast
Daily Mail
3 days ago
- Business
- Daily Mail
Rachel Reeves's policies will see UK economy just 'muddle through' for the next two years, industry group warns
Britain's economy will 'muddle through' this year and next as Rachel Reeves 's tax hikes and Donald Trump 's tariffs hit jobs and investment, the nation's leading business group says. The Confederation of British Industry (CBI) has downgraded its forecast for UK growth this year from 1.6 per cent to 1.2 per cent, and from 1.5 per cent to just 1 per cent for 2026. It marks the latest downbeat verdict on Ms Reeves's performance as Chancellor – and undermines Prime Minister Keir Starmer 's claim that Labour has 'fixed the foundations of the economy'. And the report urged the Government to do more to shift Britain out of 'low gear'. CBI principal economist Martin Sartorius said recent rises in employer National Insurance contributions and the national living wage 'have likely contributed to the recent deterioration in firms' hiring and investment plans'. He added: 'These measures are expected to push up prices, reduce margins, weigh on pay growth, and lower business investment and employment growth over our forecast.' Mr Sartorius said the impact of US tariffs may be limited – and mainly come indirectly through 'heightened economic uncertainty, weaker global trade and financial market volatility'. He said this 'underscores the need for UK policy measures that strengthen domestic conditions and help shift the economy out of low gear'. The CBI's forecast for 2025 and 2026 described the pace of growth as 'muddling through'. the nation's leading business group says. It outlined how Ms Reeves's Budget changes, which took effect in April, had 'significantly increased firms' labour costs' – especially in sectors such as hospitality and retail. That will in turn weaken hiring and investment plans, push up prices passed on to consumers and dampen profits as well as wage growth, the forecast suggested. These higher prices will also affect inflation – expected to remain above 3 per cent mainly thanks to higher energy costs and water bills. Consumer spending is forecast to pick up, but will be held back by jobs weakness, with unemployment climbing to 4.8 per cent. But a Treasury spokesman said: 'We're investing in Britain's renewal through our Plan for Change to make working people better off, and the Spending Review set out how we'll deliver jobs and growth.'
Zawya
12-06-2025
- Business
- Zawya
VIDEO: World Bank upgrades UAE's 2025 growth forecast to 4.6%, boosted by non-oil sector growth
The UAE's growth forecast for 2026 has also been revised to 4.9% for 2026, up 0.8 percentage points from January, with the country's oil GDP expected to expand. Watch the Zawya video here:
Bloomberg
06-06-2025
- Business
- Bloomberg
Italy's Economy Still Seen Growing 0.6% Amid Consumer Demand
Italy's statistics institute issued a growth forecast for 2025 matching that of the government two months ago, suggesting it sees the economy holding up against a backdrop of global trade tensions. Gross domestic product will rise 0.6% this year and then 0.8% in 2026, according to a report by ISTAT in Rome published on Friday. That chimes with the outlook from Prime Minister Giorgia Meloni's government, which halved its prediction for growth in projections released in early April.
Bloomberg
06-06-2025
- Business
- Bloomberg
Economists Slash Singapore GDP, CPI Growth Forecasts on Tariffs
Economists have cut growth forecasts for Singapore's gross domestic product and consumer prices as uncertainties of the global trade war leave the Lion City vulnerable to risks. Singapore's economy is expected to expand only 0.2% year-on-year in the third quarter this year, according to the median prediction of 13 economists in a Bloomberg survey conducted this month. That's a sharp cut from the 1.3% predicted growth in an earlier survey conducted in March.
Bloomberg
28-05-2025
- Business
- Bloomberg
Banxico Cuts 2025 Growth Forecast to 0.1% and to 0.9% for 2026
Mexico's central bank lowered its growth forecasts for this year and next amid mounting signs that Latin America's second-biggest economy is stalling. Banxico, as the bank is known, cut its 2025 gross domestic product growth forecast to 0.1% in its central scenario, from 0.6% previously, according to the presentation of its quarterly inflation report. The bank sees the economy growing 0.9% next year, from the 1.8% estimate in February's report.
