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CBI raises growth forecast but warns on business investment

The CBI has upped its economic growth forecast for 2014 but called on politicians to put incentivising business investment ahead of short-term electioneering.

The announcement comes as the organisation boosted its forecast for 2014's GDP to 3 per cent from 2.6 per cent. The revision came after the economy grew by 0.7 per cent in the first quarter of 2014.

However, CBI said that political uncertainty "remains a major risk to the economy" and its recovery and called for politicians to "stick to what's working".

John Cridland, CBI director-general, said: "The UK now has more stable economic foundations, and political risks must not jeopardise this.

"The recovery is advancing after a strong performance in the first quarter of 2014. Prospects are bright and we expect the recovery to broaden out this year, with greater support from business investment in particular.

"Businesses recognise the realities of election time but want all parties to ensure their policies make a positive difference. Politicians must be wary of the risk of headline-grabbing policies that weaken investment, opportunity and jobs."

Among the measures the CBI wants to see implemented includes working to eliminate the budget deficit and ensuring infrastructure projects are taken with a long-term strategic view.

The CBI forecasts a business investment growth of 8.3 per cent this year and 9.1 per cent in 2015.


Source: Insider News

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