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UK Economy Forecast

Author

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  • Barrell, Ray
  • Kirby, Simon
  • Riley, Rebecca

Abstract

Following a period of weakness, economic growth has been sustained for three quarters only a little below trend and appears to be gaining momentum (figure 1). We expect to see a further acceleration in growth, resulting in growth per annum of 2½ per cent this year and 2¾ per cent per annum in 2007 and 2008. Robust growth ahead is supported by the strength of external demand and small improvements in UK competitiveness. Demand is also supported by sharp rises in equity prices over the recent past. On the supply side, strong labour force growth is central to the near-term outlook.

Suggested Citation

  • Barrell, Ray & Kirby, Simon & Riley, Rebecca, 2006. "UK Economy Forecast," National Institute Economic Review, National Institute of Economic and Social Research, vol. 196, pages 40-59, April.
    • Handle: RePEc:cup:nierev:v:196:y:2006:i::p:40-59_5
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    Cited by:

    1. Mr. Andre Meier, 2009. "Panacea, Curse, or Nonevent? Unconventional Monetary Policy in the United Kingdom," IMF Working Papers 2009/163, International Monetary Fund.

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