CBI Lowers UK Growth Forecast and Warns of Job Losses
The Confederation of British Industry lowered its UK growth forecast to 1.1 percent for 2026 as global energy price shocks impact the economy. Unemployment is expected to peak at 5.5 percent while inflation reaches 3.7 percent early next year.
The Confederation of British Industry (CBI) cut its United Kingdom economic growth forecast to 1.1% for 2026 as global energy shocks squeeze living standards. This revision marks a 0.2 percentage point drop from December estimates, aligning with recent downward projections from the IMF and OECD. The downgrade signals a prolonged low-growth environment where unemployment is expected to reach its highest level in over a decade.
### Energy Shocks Stall Economic Momentum The CBI attributed the downgrade to global shocks, specifically the conflict involving Iran which has driven up energy prices. These pressures are expected to push CPI inflation to a peak of 3.7% in the first quarter of next year, up from 2.8% in April.
