Forecast?
A peak business group has looked into its crystal ball about economic growth and it has found some numbers.
While some analysts are laying low until more substantial data about the direction of the economy is revealed , CBI has claimed that the Treasury’s forecast of Britain’s economic growth in 2008 of between 2.25 and 2.75 per cent was optimistic and growth was more likely to be around 1.8 per cent.
CBI went further in its analysis stating that inflation was likely to top 3.2 per cent before being reeled in, sparking a reduction in interest rates in the second and fourth quarters of this year reaching a base rate of 4.5 per cent.
The group also stated that low economic growth is likely to remain throughout 2009.
Do you think this forecast is specific enough? It is amazing what can be stated when the forecasters are not held accountable.
The Treasury would be held accountable on its forecasts.
The CBI forecast is just one of the many forecasts available on economic conditions in Britain, there are many business and financial groups gazing into the crystal ball at the moment and there is very little consensus.
Some are claiming the worst is over, while others are still talking doom and gloom.
No wonder the average investor is becoming confused.
It isn’t helped by the mixed signals coming from market data.
Employment is strong, but business investment and confidence is down, also the economy is contracting but inflation pressure is up.
When will it end?
