You are here: Home - Investing -

UK economy ‘to grow 2.5%’ in 2014

Written by:
The UK economy is set to grow by 2.5% this year and 2.1% in 2015, the National Institute of Economic and Social Research (NIESR) has predicted.

According to the think-tank, the unemployment rate is also likely to fall below 7% early this year – the threshold outlined by the Bank of England’s forward guidance on interest rates.

Meanwhile NIESR said CPI inflation is expected to be marginally above target this year, before dropping below target in 2015.

The prediction is similar to that of the Office for Budget Responsibility, as well as other forecasters.

The NIESR attributed the 2014 recovery in GDP to increased consumer spending, along with continued buoyancy in the housing market.

“The UK’s economic recovery has become entrenched. Above trend growth returned in 2013, while the remarkable performance of the labour market persists,” it said.

“Consumer price inflation returned to the Bank of England’s target rate in December, raising the prospect of a resumption of real consumer wage growth.”

A more supportive funding environment, combined with more certainty about future growth, will fuel robust growth in business investment, it added.

However, it remains concerned about falling productivity: “Our forecast remains one of a gradual improvement in productivity, but continued stagnation poses a downside risk to the UK’s medium-term prospects.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Friday newspaper round-up: Scotland, Royal Mail, Twitter

Cameron urges Scotland to stay in UK; Royal Mail IPO row reignites; Twitter planning changes to reverse slowdown.