The UK economy could recover “quicker than expected”
The leading forecaster said that the economy will return to growth in the second half of the year, boosted by an increased in consumer spending and falling inflation. The optimistic view for an “Indian summer” remains dependent on eurozone leaders delivering on promises to boost growth.
Despite the positive view, the ITEM Club has downgraded its growth forecasts for the year as a whole from 0.4 per cent to 0 per cent, blaming the “dismal first half of the year” when the country returned to a recession after two quarters of negative growth.
The economy will grow by 1.6 per cent in 2013 and 2.6 per cent in 2014, it says.
The rest of this article can be read in Economia.