While the eurozone economies remained mired by the currency and debt crisis, the UK appears to be breaking free, with a string of more encouraging economics releases. But this has yet to show through in most economists' forecasts.
The Treasury carries out a monthly survey of forecasts made by independent economists. At the end of 2012, the consensus was that the economy would grow by 1.1% in 2013. Since then, forecasters have become gloomier, and the average prediction for growth in 2013 is now only 0.8%. This is in spite of the Office for National Statistics (ONS) publishing a better-than-expected preliminary estimate of activity in the opening quarter. Trade Growth was dull in 2012 because exports to continental Europe fell sharply. In contrast, there was evidence demand from the domestic market was gaining...
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