Leading economic experts have forecasted economic growth in the UK after a lull in 2017, with a global economic boom likely to outweigh the impact from the UK’s decision to leave the European Union.
According to research published by the National Institute of Economic and Social Research, the positivity of the world economy combined with the beneficiaries British exporters gain from the weak pound will help increase GDP growth, and trigger a rebound in consumer spending.
With GDP growth projected to be 2% for 2018 and 2019, it was revealed by the Bank of England that interest rates could be raised in May, with further increases not ruled out in the following six months.
It was previous estimated that growth would be at 1.7%, but the expectation has been revised to 1.9%.
The National Institute of Economic and Social Research not only attributed its more positive predictions to the global economy but as well some of the work by ministers in the Brexit trade discussions.
The United States, China and the Eurozone are performing very well, recovering from the 2008 financial crash, and the UK is benefitting as the economies around the world recover too.
It is expected that inflation will fall this year following the impact from the drop in the value of sterling, and easy the pressure on consumer’s wallets.
The report from the National Institute of Economic and Social Research are of stark contrast to reports last month, which said UK economic growth was at its weakest pace in five years.