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.
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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.’