Stronger economic growth in 2014

The influential Ernst & Young ITEM Club is predicting stronger economic growth next year.

According to the consultancy, exports and business investments will take up the slack in the economy in 2014.

Exports are likely to be boosted by economic recovery in the US and greater consumer spending in China.

They are forecasting economic growth of 1.1% in 2013, followed by 2.2% in 2014 and about 2.5% a year thereafter.

Compared to 2011, EY believes the economy has “broader and firmer” foundations.

Risks include economic growth remaining reliant on consumer spending and the housing market recovery.

The ITEM Club tends to be well respected when it publishes its economic forecasts because it uses the same model of the UK economy as HM Treasury.

Their reports are independent of any political, economic or business bias.

Photo credit