
The National Institute for Economic and Social Research (NIESR) has raised its predictions for UK growth, estimating that the economy will grow by 1.2 per cent this year and 1.8 per cent in 2014 – up from 0.9 per cent and 1.5 per cent respectively.
According to the NIESR, Britain is seeing a gradual gain in economic momentum. “We have revised up our GDP forecasts by 0.3 percentage points in both 2013 and 2014, to 1.2 and 1.8 per cent per annum respectively,” says the respected think tank. “The main cause of the improvement in the economic growth outlook is a rise in the prospects for consumer spending growth. This increased contribution from consumer spending is at the expense of household saving, rather than a consequence of rising real disposable incomes.”- The economy will grow by 1.2 per cent this year, and by 1.8 per cent in 2014.
- Unemployment rate will remain close to 8 per cent both this year and next.
- Consumer price inflation will remain above 2.5 per cent per annum this year but will fall back to 2.3 per cent, on average, next year.
- Public sector net borrowing will be around £112bn (7 per cent of GDP) in 2013/14.
Employment
Share this story