The UK economy is expected to grow faster than initial projections first thought this year as the British Chambers of Commerce has revised up its forecast.
Stronger labour markets and better than expected growth have seen the BCC nudge up their prediction of growth from 3.1% to 3.2% in 2014.
A stellar growth of 3.2% is well above the 2.7% forecast by the Office for Budget Responsibility – the government’s independent fiscal watchdog – made in March. Earlier this month the Bank of England upgraded its growth forecast for this year to 3.5% from 3.4%. This has also had a knock on effect on the forecasts for next year as they move from 2.7% to 2.8% on the back of strong employment figures.
This news has come on the back of several investments in energy and infrastructure by the UK government which has boosted construction along with the investments in each of those sectors. This is also, in part, because of the confidence once again found in the retail sector as 51% of retailers have seen a rise in trade from the previous year suggesting that domestic consumers once again have faith in the country’s economy. Sales volumes grew strongly among grocers, chemists, and furniture and carpet retailers while specialist food and drink stores saw sales fall. Figures would suggest that retailers are at their most optimistic since May 2002.
Britain has seen several boosts in key sectors such as manufacturing and construction throughout the year and the combination of these seems to be coming to fruition for the economy as a whole as the country moves from strength to strength. Still the most popular place to invest in Europe, the UK has been surging ahead with pushing its economy forward since the financial troubles of 2008.
Strength in the labour market is also good news as Britain has seen unemployment fall this year with more and more qualified workers being picked up and it’s here where Britain is expected to make the most of its economic worth with more people in work producing capital for the country. With a highly educated workforce at their disposal the UK offers plentiful opportunity for investors with recent pro-business policies put in place in order to encourage further outside investment in the country to help it kick on with strengthening its economic footing.