UK Economy To Grow 2.5 Percent in 2014

The UK economy will grow by 2.5% this year and 2.1% in 2015, the National Institute of Social and Economic Research (NIESR) has forecast.

The think tank said the UK’s economic recovery had become “entrenched”.

The estimates are broadly in line with those of other forecasters, including the UK’s Office for Budget Responsibility.

NIESR also said it expected the unemployment rate to fall below 7% before the end of the year.

Jobless figures released last month showed that the unemployment rate fell to 7.1% in the three months to November.

Last year, the Bank of England said it would consider raising interest rates from their current historic lows if the unemployment rate fell below the 7% threshold, though it has since played down expectations of rate rises in the near future.

NIESR’s forecast follows similar raised UK growth forecasts from the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD), which are also increasingly optimistic about the UK’s economic prospects.

via BBC

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