UK Economy 'May Have Grown By Up To 1%'

Written By Unknown on Jumat, 25 Oktober 2013 | 12.25

Official statistics released later are expected to show that the UK economy grew by up to 1% in the three months to September.

Investec's Philip Shaw forecasts 0.8% growth for the third quarter but said it was "not impossible" that it could be closer to 1%.

Samuel Tombs, an economist at Capital Economics added: "GDP looks on track to have grown at a healthy rate."

Growth of around 0.8% or higher would be the strongest for three years and be the first time the economy has expanded for three successive quarters since 2011.

The UK economy expanded 0.7% month on month in the second quarter of this year, the fastest rate since 2010.

GDP Q3 results

The National Institute of Economic and Social Research predicted that output has grown by 0.8%.

This is higher than official forecasts by the Bank of England and the Office of Budget Responsibility, which have predicted growth rates of 0.5% and 0.3% respectively.

Official word on the UK's economic performance comes from the Office for National Statistics. The figure will then be revised at a later date.

The housing market recovery is seen as a driving force behind the rising economic output.

The IMF now expects the economy to grow by 1.4% this year – double the rate it was forecasting in April.


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