Britain's economy now looks likely to sidestep recession entirely this year but deep-rooted problems like weak business investment will persist, the Confederation of British Industry trade body said on Monday.
"While encouraging, there's no getting away from the fact that this year will be another tough one for both businesses and households," CBI lead economist Alpesh Paleja said, noting that the Bank of England looks likely to raise interest rates to a peak of 5% by August from 4.5% now.
"It's also concerning that the UK is underperforming on many of the areas crucial to our long-term prosperity, such as business investment and trade intensity," he said. The CBI does not expect business investment - a weak spot for Britain's economy since the Brexit vote of 2016 - to return to its pre-pandemic level before the end of next year.
"Making our business environment more attractive to firms at home and abroad must be front of mind in the months ahead," Paleja said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Boris Johnson's shock exit reverberates through British ruling partyOld rifts resurfaced in Britain's ruling Conservative Party on Saturday following former prime minister Boris Johnson's abrupt resignation from parliament, while the opposition Labour Party sensed opportunity ahead of a general election next year.
Read more »
Doctor Who: Doom’s Day Maintains Show's Satirical British Sci-Fi VibeDoctorWho: DoomsDay is available on the official Doctor Who website, continuing the series' tradition of satirical British ScienceFiction. / BBC
Read more »
Several British guardsmen faint as Prince William reviews military paradeSeveral British soldiers were overcome by the heat on Saturday as they turned out in woolen tunics and bearskin hats to salute Prince William.
Read more »
British girl, 3, stabbed during knife attack in France will leave hospital: prosecutorsThe 31-year-old assailant, a Syrian refugee, has been slapped with preliminary attempted murders charges.
Read more »