CBI expects UK economy to beat forecasts
The UK's economy will grow by three per cent during 2004, according to the CBI, slightly better than previously predicted.
Publishing its quarterly economic forecast, the CBI said rising exports, resilient consumer spending and greater business investment meant there would be an upward revision of 0.2% on previous predictions.
It also upped its forecast for 2005 to 2.8% from 2.7%.
The CBI is also predicting further increases to the interest rate.
By the end of 2004 it estimates the Bank of England will have increased the rate to 4.5% and it will peak next year at 2005.
CBI chief economist Ian McCafferty said: ‘The economy should grow robustly this year and next as exports benefit from the gathering momentum in the global recovery.’