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UK Economy Forecast

Published online by Cambridge University Press:  26 March 2020

Simon Kirby  and
Rebecca Riley
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Extract

The economy continues to expand at a robust pace (figure 1). We now expect GDP to rise by 2¾ per cent in 2007 after similar growth in 2006. This is an upward revision to our forecast for economic growth in 2006 and 2007 of approximately ¼ percentage point since October. Underlying these changes to the forecast for 2006 are upward revisions to the data for the first half of last year and stronger than expected growth for the third quarter of last year. The healthy pace of expansion forecast for this year is supported by a further acceleration in domestic demand growth after the weakness observed in 2005. This is led by a pick-up in consumer spending, supported by stronger growth in real disposable incomes and rapid accumulation of household wealth, and the continued strength of investment demand.

Type
Articles
Information
National Institute Economic Review , Volume 199 , 01 January 2007 , pp. 40 - 58
Copyright
Copyright © 2007 National Institute of Economic and Social Research

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Footnotes

The production of this forecast is supported by the Institute's Corporate Members: Abbey plc, Bank of England, Barclays Bank plc, Ernst and Young LLP, Marks and Spencer plc, The National Grid Company plc, Nomura Research Institute Europe Ltd, Rio Tinto plc, Unilever plc and Watson Wyatt LLP.

References

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