CBI: latest GDP figures are decent and North Sea oil investment welcomed

Posted On: 29th January 2016

The CBI has said the latest official UK GDP figures show that the UK economy is in decent health but said that some sectors are struggling. Business Still-life

The figures showed 0.5% growth in the fourth quarter of 2015, taking the annual rate of growth for 2015 to 2.2%.

It also welcomed the announcement by the Prime Minister on support for the North Sea oil industry. A major new injection of cash into North East Scotland’s economy was announced with the signing of a new UK City Deal fund of up to £250m. The City Deal will address a number of proposals from the region including a new energy innovation centre, supporting the industry to exploit remaining North Sea reserves, as well towards the expansion of Aberdeen harbour, enabling the city to compete for decommissioning work.

Rain Newton-Smith, CBI Director of Economics, said:

“The UK economy ended 2015 in decent health, but it’s clear that some sectors are having a tough time.

“Manufacturers are still feeling the hit from weaker global growth and competitive pressures from abroad. And while low oil prices are a boon for the economy as a whole, businesses in the North Sea industry are suffering.

“That’s why the North Sea oil support package announced by the Prime Minister is positive, and the Government must continue to engage with industry closely to help ensure a smooth transition to lower oil prices.

“While the economy should see decent growth over 2016, global risks have ramped up noticeably – particularly with prospects for emerging markets looking weaker, bearing down on the outlook for the world economy.”

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