UK economy predicted to exceed expectations
The British Chambers of Commerce (BCC) has revised its forecast for GDP growth from 2.7% to 2.8% in 2014.
Excluding the impact of inflation, UK GDP is expected to reach £392.8 billion in the three months to July. The last comparable year was early 2008, in which the GDP reached £392.7 billion.
John Longworth, Director-General of the BCC, said: ‘Our economic recovery is gaining momentum. Businesses across the UK are expanding and creating jobs, and our increasingly sunny predictions for growth are a testament to their drive and ambition’.
Despite the optimism, the organisation also warned that real wages are only likely to increase if productivity and investment increase. ‘It is not time to break out the champagne just yet,’ said Mr Longworth.
Chancellor George Osborne is likely to comment on these new figures in the annual Budget speech, which is due to be given on Wednesday 19 March.