UK Economic Growth

UK Economic Growth.

The UK economy is set to grow 2.5% this year and 2.1% in 2015. The forecast by the National Institute of Social and Economic Research (NIEAR) is in line with other forecasts.

Unemployment is also expected to drop below 7% before the end of this year, this comes as results from the welfare cap show that 3,000+ people hit with the cap have found work.

The Bank of England said that if unemployment fell below 7% it would consider raising interest rates, however they have since played down the chance of interest rate rises.

The current recovery and expectations are being linked to falling unemployment numbers and rising house prices. Even the slower sectors of the economy such as construction are seeing signs of recovery.