The Confederation of British Industry (CBI) has significantly lowered its UK economic growth forecasts for 2025 and 2026, citing rising labor costs, newly imposed U.S. tariffs, and geopolitical uncertainty. While household spending is expected to drive growth in 2026, the Bank of England anticipates tariffs will reduce economic output. The CBI remains optimistic about long-term potential despite short-term challenges.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets