UK economy 'to grow 1.4%' in 2013

Economic thinktank the National Institute of Economic and Social Research (NIESR) has forecast the economy will grow by 1.4% this year.

The thinktank said economic growth had returned following two years of stagnation, and is forecasting the sharp rise in GDP this year, followed by a 2% rise next year. NIESR said GDP is expected to return to its previous peak in early 2015, while predicting CPI inflation will also fall to an average of 2.5% next year. The upward revision of the forecasts has returned them to August 2012 levels and NIESR said the falls since then were due to changes in consumer spending and developments in the Euro area. The public sector deficit should fall slowly but accelerate in the following ye...