UK growth poised to surpass 3%, says CEBR

22 Apr 14
The UK will grow by more than 3% this year, the Centre for Economics and Business Research has forecast in the latest upbeat assessment of the economy.

By Richard Johnstone | 22 April 2014

The UK will grow by more than 3% this year, the Centre for Economics and Business Research has forecast in the latest upbeat assessment of the economy.

According to the CEBR analysis published yesterday, growth will top 3% in real terms for the first time since 2007. This is an increase from the centre’s previous projection of 2.8% and a result of what it called ‘high confidence in economic prospects’.

The latest upgrade of the UK’s economic prospects comes after both the International Monetary Fund and the EY Item Club both increased their growth predictions earlier this month.

CEBR also predicted the economy would grow by 2.2% in 2015, but warned government spending cuts were then likely to hit growth prospects.

Deep cuts will be needed in the next parliament if Chancellor George Osborne is to come close to meeting his deficit reduction targets, which include running an absolute surplus in 2018, the CEBR analysis stated.

Over the course of the next parliament, 2015-2020, CEBR said it expected government spending to decline by 2.1% in real terms.

Scott Corfe, the centre’s managing economist and main author of the report, said the UK’s economic position had improved significantly since the start of 2013.

‘However, challenges remain and economic growth is likely to fall back after 2014,’ he added.

‘There will be difficult government spending cuts to be made in the next parliament and the parlous state of the UK’s trade position could become a significant economic issue going forward.’

 

Spacer

CIPFA logo

PF Jobsite logo

Did you enjoy this article?

AddToAny

Top