More robust growth predicted for UK economy

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

Increase in secured loans predicted for June quarter

Financial institutions expect figures to show an increase in demand for secured loans for the June quarter.   
According to the Bank of  Jamaica’s Quarterly Credit Conditions  Survey Report, interest rate changes and loan promotion activities are expected to drive the anticipated increase in credit demand.  
It is believed that credit conditions in the market for secured and unsecured loans will have a positive impact on credit demand.  
Lenders expect an extension in the maximum repayment period on secured and unsecured loans as well as higher credit card limits.

However, an anticipated increase in the required minimum repayment amount and the expectation for higher fees will temper credit demand.

The report also shows that at the end of  March, the stock of  credit in the banking system was $473.6 billion. This reflected a 1.2% increase relative to December 2013.    
The BOJ’s Quarterly Credit Conditions Survey suggests that 58 per cent of loans was distributed to households and 42 per cent to businesses across all firm sizes.    
This reflects a change in the distribution relative to the December 2013 quarter when 63 per cent of the stock of credit was allocated to households and 37 per cent to businesses.

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Increase in secured loans predicted for June quarter