The "National Institute of Economic and Social Research" in the UK recently released a report stating that the country's GDP has now recovered to the levels seen in March 2008. The report predicts that the GDP will grow by 2.9%, 2.4%, and 2.4% respectively from 2014 to 2016, with unemployment rates expected to drop to 6.3% and 6.2% over the next two years; inflation rates will remain low at 2.0% and 1.6%. The head of the institute stated that it took the UK a full six years to regain its vitality.
The head of the institute mentioned that as of April this year, the total volume of the UK economy had reached historic levels, with an increasingly solid foundation for economic growth. In the first quarter of this year, the UK's economy grew by 3.1% year-on-year and 0.7% quarter-on-quarter. The International Monetary Fund also predicts that the UK economy will grow the fastest among the G7 countries this year, raising its growth rate forecast for the UK to 2.9%.
The latest data from the Office for National Statistics shows that the UK's manufacturing output increased by 1.4% in the first quarter, exceeding expectations, marking the highest growth rate since 1999; construction output grew by 5.4%, and the trade deficit decreased to £1.3 billion; employment rose to 30.43 million, the highest record since 1971, with average income up by 1.7% compared to last year; the unemployment rate dropped to 6.8%, the lowest in five years.
The Bank of England has also raised its economic growth expectations for this year from the previous forecast of 2.7% to 2.9%; it also predicts that the UK unemployment rate will significantly drop to 5.9% within two years, whereas the previous forecast suggested it might remain at 7% over the coming years.
