LONDON, July 21 (Xinhua): With GDP expansion at 3.1 per cent expected for 2014, Britain is set to achieve the strongest growth rate among the Group of Seven (G7) economies, said the EY ITEM Club Monday.
British gross domestic product (GDP) growth rate is higher than the 2 per cent for Canada and 1.8 per cent for Germany, as well as the 2.9 per cent that it given three month before, according the EY ITEM Club's Summer Forecast report.
Besides consumption acting as the main driving force of the economic recovery in the first half, businesses are now expected to pick up the baton with capital investment by firms set top surprise on the upside, said the London-based economic think-tank.
Companies' capital spending might expand significantly by 12.5 per cent in 2014, foretasted the report. And consumer spending might grow moderately at 2.5 per cent in 2015.
British unemployment rate will continue its descent, falling from 6.5 per cent in the three-month to May 2014, to 5.6 per cent by the end of 2015.
The country's economy will enjoy a "perfect combination" of consumption financed by strong employment, rather than wage growth and borrowing, accompanied by low inflation and low interest rate, said the report.
"Business investment is being ramped up generating over half of the growth over the last year and helping to rebalance the economy away from consumption," said Peter Spencer, chief economic adviser to the EY ITEM Club.
UK GDP growth to top G7 countries: Thinktank
FE Team | Published: July 22, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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