CBI predicts GDP growth in 2013

The Confederation of British Industry (CBI) believes that businesses will help the UK economy to grow by 0.3 per cent in the first quarter this year.

Indeed, the organisation believes that small firms and others will help the country avoid a triple-dip recession, with one per cent Gross Domestic Product growth expected in 2013.

The findings back up similar surveys that have recently shown businesses to be in a positive mindset in the early part of the new year, with many keen to expand their staff headcounts in the coming months.

John Cridland, the CBI's Director-General, explained that while the eurozone could still deliver problems for UK firms, the initial outlook is positive.

"We are beginning to see the return of organic growth, with clear signs that firms offering the right products into the right markets are growing sales and expanding," he noted.

"Recent business surveys also give grounds for cautious optimism about our forward prospects."

It comes after the Department for Environment, Food and Rural Affairs gave £1 million in funding for small firms in the north-east, helping them to expand.

Posted by Ben Evans

Last updated: 14th February 2013