The UK economy is set to move from ‘flat to growth’ according to the latest economic forecasts from the CBI. These figures show that the UK economy is predicted to post growth throughout 2014. However, there are still significant challenges that need to be addressed, both at home and abroad, if businesses are to make the most of their opportunities in the coming year.
The CBI is forecasting growth of 1% in 2013, which is unchanged from its previous forecasts after the first official quarter figures came in in line with their predictions. Quarter-on-quarter growth is expected to gain more pace, but gradually. The CBI is currently forecasting growth of 0.3% in Q2, 0.4% in the third and 0.4% in the last quarter of 2013. Next year in 2014, the CBI is expecting growth of 2%, with quarter on quarter growth ramping up to range between 0.5%-0.6%.
John Cridland, CBI Director General, commented;
‘The economy is moving from flat to growth. Although recent data suggests rising business confidence, the economic climate remains tough, hampering demand here and overseas. Meanshile, consumers remain under pressure, as inflation continues to outstrip wage growth.’
‘Now the Government needs to pick up the baton and deliver on promises to get finance to firms, cut red tape and help drive up exports.’
These exports look to be one of the key opportunities for firms in the coming months and years of recovery. Small and medium sized businesses need to make sure they are well placed to take advantage of this as foreign markets are starting to present real opportunities for businesses of any size.
Small businesses also need to overcome the tough lending environment presented by banks who are unwilling to lend to any business they perceive as ‘risky’. If your business needs help, then invoice finance will be there throughout the coming years if you need accessible, flexible finance that grows with your business.