CBI predicts economic growth

It has been a tough few years for small businesses in the UK, but some good news could be just over the horizon.

According to the CBI, the economy will resume growth in the second half of the year, with GDP growth increasing through 2013. This year, growth is predicted to come in at 0.6 per cent, rising to two per cent next year.

Meanwhile, inflation is set to continue on a downward trend and will hopefully reach the Bank of England's target rate by spring of 2013.

John Cridland, director-general of the CBI, commented: “Despite the disappointing GDP estimate for the first quarter from the Office for National Statistics (ONS), we still think the UK economy will grow in 2012, with faster growth next year.

“Optimism among businesses has been increasing since the turn of the year, with manufacturing demand holding up. And that is beginning to translate into more jobs and investment.”

The news comes after the latest ONS data showed that the UK dropped back into recession, with a contraction in GDP recorded over the previous two quarters. With this in mind, small businesses are likely to welcome the chance of growth in the coming months.