NIESR finds pick up in UK growth rate

10 Jun 15

The National Institute of Economic and Social Research has estimated that gross domestic product in the UK increased by 0.6% between March and May.

In its monthly examination of the economy, the think-tank noted that growth had quickened from the 0.5% rise in output between February and April.

NIESR said these estimates were consistent with forecasts for a rebound of economic growth in the second quarter of this year.

“Our main forecast from the National Institute Economic Review, which was published recently [noted] that the first quarter of very weak growth this year was only a temporary phenomenon and we expect that the growth throughout 2015 will be much stronger,” economist James Warren told Public Finance.

“We see our recent estimates as indication of this forecast.”

The think-tank has forecast that the UK economy will expand by 2.5% for the year as a whole. This would mean that growth is slightly down on 2014, when the economy expanded by 2.8%, according to the Office for National Statistics.

The CBI downgraded its UK economic forecasts for this year and next on Monday, and is now predicting growth of 2.4% in 2015, rising to 2.5% in 2016.

  • Judith Ugwumadu

    Judith Ugwumadu joined Public Finance International and Public Finance online as a reporter after stints at Financial Adviser, Global Security Finance and The Sunday Express. Currently, she writes about public finance, public services and economics.

    Follow her on @JudithUgwumadu_

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