UK and EU GDP growth forecasts raised

The European Commission has revised GDP forecasts for the UK slightly upwards, while the EU as a whole has also seen its figure boosted.

According to the Commission's latest interim forecast, GDP growth in the UK is expected to be 1.7% in 2010, up 0.5% from the spring forecast. This will be largely as a result of export growth, boosted by improved economic conditions among the UK's European export markets. The report also outlines how GDP growth in Q2 "accelerated sharply and unexpectedly" to 1.2% from 0.3%, driven by a turning of the inventory cycle and "resilient household spending". However, a slowdown is predicted in H2, with investment spending by businesses being limited by weak demand and tight credit conditi...