An influential report has forecast the UK economy to grow faster in 2014 than any other G7 economy. It said low wage rises will ensure interest rates do not increase until next year.
The EY Item Club said the UK’s Gross Domestic Product will hit 3.1% this year (up from a previouys forecast of 2.9%), spurred by strong capital investment by businesses. It said this was due to an expected 12.5% jump in business investment.
This compares with the forecast of 2% GDP growth in Canada and 1.8% in Germany.
Official figures show that UK GDP rose by 0.8 percent in the first three months of the year, the fifth consecutive quarter of positive growth.
This represents the longest positive run since the financial crisis.
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More robust growth predicted for UK economy
