The latest economic forecast from the Confederation of Business Industry predicts Britain's economy will shrink 0.4% next year as inflation remains high and companies put investment on hold. The expected 0.4% fall in GDP is a downgrade from its previous forecast of 1% growth set in June. Business investment is expected to slump by 9% below pre-Covid pandemic levels by the end of 2024.
CBI director-general Tony Danker warned: “[Companies] see potential growth opportunities, but a lack of ‘reasons to believe’ in the face of headwinds are causing them to pause investing.” To combat this, the CBI called on the Government to make Britain's post-Brexit work visa system more flexible and give greater tax incentives for investment. "We will see a lost decade of growth if action isn't taken. GDP is a simple multiplier of two factors: people and their productivity. But we don't have people we need, nor the productivity," Danker said.
Read more: Bloomberg
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