CBI responds to Q2 GDP

Alpesh Paleja, CBI Lead Economist, said:

“Growth bounced back over the second quarter as restrictions on activity were gradually lifted, underscoring that tackling the pandemic goes hand-in-hand with supporting economic growth.

“Yet challenges to the recovery are emerging. Several supply bottlenecks have likely taken the edge off growth over the summer: a shortage of raw materials and semiconductors, continuing global supply chain disruption and staffing shortages. In the near-term, every effort must be made to safeguard the UK recovery.

“Meanwhile, pre-COVID-19 issues have not disappeared. Boosting business investment and poor productivity are key to securing future prosperity and competitiveness. As a first step, the Government must make progress on reforming the UK’s outdated business rates regime, incentivising capital spending in several of the Government's key ambitions, including levelling up and the transition to net zero.”