There might be a stronger economic performance on the horizon for the coming year than first thought – the Bank of England has upgraded its growth forecast for the UK economy. This is good news for businesses who might start to feel more confident about investing in growth if the economic environment starts to stabilise and grow. There are also predictions that inflation will start to fall faster than predicted – governor of the Bank of England, Mervyn King predicts it will fall to its target of 2% within two years.
King continues: ‘Today’s projections are for growth to be a little stronger and inflation a little weaker than we expected three months ago. That’s the first time I’ve been able to say that since before the financial crisis. This hasn’t been a typical recession and it won’t be a typical recovery. Nevertheless, a recovery is in sight.’ The Bank of England now expects the GDP growth of 0.5% during the current quarter.
However, it’s important to keep things in perspective. Recovery is in sight, but it’s still a while off yet. Though there will be growth, the governor still predicts that the bank rate will remain below 1% for at least four years. Though growth is predicted, it’s still only marginal growth.
If your business needs to inject a bit more confidence into growth opportunities, then it’s worth looking into alternative finance opportunities which could give a bit more leeway if cash flow is tight. Invoice finance is one such option – you can unlock funds tied up in unpaid invoices so you can make the most of the growth opportunities for your business. With only marginal growth predicted, it’s important to make the most of the growth that’s available to your business.