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Cbi Cuts Uk Growth Forecasts While Warning Of Eu Uncertainty

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The CBI has cut its UK growth forecasts and warned of further risks to the economy posed by a possible "messy" end to the Greek crisis and uncertainty over the EU referendum.

The business lobby group now expects 2.4% growth this year and 2.5% next year, down from February's forecast of 2.7% and 2.6% respectively.

It blamed weaker-than-expected growth in the first quarter for the downgrade.

The 0.3% expansion marked the UK's weakest growth since the end of 2012.

The CBI described this as a "temporary blip" and said it now believed the UK economy was on a "firm footing".

But it said a "still sluggish eurozone", renewed uncertainty over Greece's economic future, and the in/out referendum on the UK's EU membership - which Prime Minister David Cameron has said will take place by the end of 2017 - were all potential threats to the UK's recovery.

"Risks to UK growth are tilted to the downside. A messy resolution of the Greek crisis could spark financial market and exchange rate volatility which could spill over into the real economy," the CBI said in its forecast.

Erm what recovery?

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http://www.independent.co.uk/news/business/news/chancellor-is-relying-on-credit-card-spending-to-maintain-growth--tuc-10303885.html Chancellor is relying on credit card spending to maintain growth – TUC

The TUC today accuses the Chancellor, George Osborne, of expecting families to “bail out his faltering recovery on their credit cards” in the wake of figures predicting a sharp rise in household debt by the end of this parliament.

It comes following sharp criticism of Labour’s record on household borrowing made by the Tory MP Mark Garner in the House of Commons last week.

Mr Garnier, a former banker and hedge fund manager and a member of the Treasury committee in the last parliament, told MPs that the subject of debt was “incredibly important”, arguing that debt “is not just national; there is household debt as well”.

He then said: “Does the Chancellor agree that the £1 trillion rise in household debt between 1997 and 2008, taking it up to £1.47 trillion, was one of the most pernicious acts of the Labour government?”

The Chancellor described Mr Garner as “right”, but while household debt fell in the years following the financial crisis, the Office for Budgetary Responsibility (OBR), which Mr Osborne set up, believes that it will be back to record levels as a proportion of household income by the end of the current parliament.

Plan A is to increase debt

Plan B is to increase debt

Plan C is to increase debt

And Plan D is to combine ABC and increase the debt.

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Good job they waited until three weeks after the GE before publishing their downgrade.

Just like the IMF

Wait until England has been told austerity is the only way to pay down the debt and save the country, voted in a Tory govt, then admit that austerity is bad for the economy.

CBI are forced to reduce their growth forecast because the Tories won and thus Osborne can implement their cuts unhindered.

It was all a con.

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The recovery has been immense for the 1% and big corporates with record level profits (low investment, low wages, dodging taxes). Just the rest of us that have suffered 7 or 8 years of declining living standards, and we're probably about due another crash now which should put the final nail in the coffin.

I honestly think people might begin to wake up if we have another crash - this time there has been no boom, just bust. I'd like to see the bankers explain yet another f**k up so soon from the last.

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GDP is a fantasy number, just like RPI, CPI etc. Please see any of the threads on imputed rent, and the inclusion of drugs & prostitution. The elite will always manage it so that it suits their agenda.

The numbers that they don't report are the important ones. Debt (on & off balance sheet), balance of payments are real numbers and harder to 'revise'.

If they are sharing information, it's because they don't want you talking about something else.

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...They're so transparent in their search for excuses.

Must be the weather and consumer spending again.

Heatwave, cold snap, Ice Age, Global warming... :rolleyes:

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