UK economy is about to surge back to life, says leading forecaster

Economic thinktank NIESR predicts boom in exports and higher wages will lead to GDP growth of nearly 2% and interest rate rise

Britain’s economy will surge back to life in the next six months following its slow start this year, a leading forecaster has predicted, prompting the Bank of England to raise interest rates next spring – more than a year earlier than its previous projection.

The National Institute for Economic and Social Research (NIESR) said a boom in exports after the fall in the pound and a return to bumper wage rises next year would be enough to increase GDP growth to almost 2% and convince the central bank to increase the cost of borrowing.

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