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Thứ bảy, ngày 2 tháng 11 năm 2024
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Ngày 22/04/2015-10:45:00 AM
British forecaster estimates 2.8 pct growth for Britain in 2015

Britain's economy will expand by 2.8 percent in 2015 despite the "political uncertainty mounting" over the general election, said the EY Item Club in a report on Monday.

The London-based economic forecaster also expects British gross domestic product (GDP) will grow to 3.0 percent in 2016.

A strong labor market, benign inflation, and a supportive interest rate environment are expected to boost Britons' consumption, with a real income growth of 3.7 percent in 2015 for the household, said EY ITEM Club.

The forecaster projects that British CPI inflation will average 0.1 percent this year, but it will move back above one percent this winter, paving the way for the first rate increase in early 2016.

The stronger growth of the euro zone, which is boosted by the European Central Bank's quantitative easing program, is also another factor supporting Britain's growth.

"The fall of the euro against the pound will add weight to the forces bearing down on UK inflation and buoying consumer incomes and spending," it said.

The EY ITEM Club is forecasting that British economic growth will remain "healthy" through to 2018, averaging just under three percent per annum.

However, it noted that the cooling down of business investment would be one of the concerns for British growth./.


Xinhua

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