CBI: More investment needed

According to the Confederation of British Industry (CBI), the recovery of the British economy is picking up some short-term momentum and power but concerns remain over a lack of commerce and investment activity.

The organisation has raised its growth forecasts for 2013 and 2014, predicting GDP expansion of 1.2 per cent over the rest of the year compared to its suggestion of one per cent made in May.

Things are to improve even more in 2014, with growth of 2.3 per cent predicted as business investment and personal spending increases, giving the ailing economy a much-needed shot in the arm.

However, changes will need to be seen in the coming years if the UK is to fulfil its potential, with the CBI arguing that the corporate and investment sector will be crucial - something that will appeal to financial services professionals looking for jobs in the area, which has endured a difficult few years.

"We need to see a full-blown rebalancing of our economy, with stronger business investment and trade before we can call a sustainable recovery. We hope that will begin to emerge next year, as the Eurozone starts growing again," said CBI director-general John Cridland.

He urged the government to get behind UK businesses and support them in launching new products or services in emergent markets to drive domestic growth and keep the British brand as a business hub strong.

"The economy has started to gain momentum and confidence is picking up, but it’s still early days," he concluded.

Business investment and exports are expected to strengthen as the global economy improves and the Eurozone returns to growth, offering further trading and finance opportunities to UK firms.

CBI director of economics Stephen Gifford warned there are still structural problems to be worked out in many countries around the globe, with emergent markets likely to experience some slow-down as they adapt to their new economic conditions and risks still prevalent in the financial world.