Think tank provides UK growth forecasts

According to leading economic think tank, the National Institute of Economic and Social Research (NIESR), the UK economy grew by 0.3% in the December to February period and has expanded by 0.7% since last September’s slump.

The NIESR’s latest predictions come just a few weeks after the Office for National Statistics (ONS) revealed the UK economy saw growth of 0.3% in the fourth quarter of last year – stronger than original estimates.

The NIESR’s growth forecasts come despite the impact the icy weather in January has had on the economy with retail sales, industrial output and the services sector all suffering as a result.

Meanwhile, the Institute said it does not expect UK economic output to return to peak 2008 levels until 2012.

The UK emerged from recession in the fourth quarter of last year after experiencing its worst recession since records began in 1955.

The ONS will release its first estimate of first quarter growth on April 23.

Discuss this in the Finance Markets forums

Story link: Think tank provides UK growth forecasts