–European Commission Sees Q3, Q4 Growth Of 0.5%
–Projects UK Average HICP Inflation Of 3.0% in 2010
LONDON – The European Commission has upwardly revised its
projection for economic growth in the UK for 2010, with the Commission
now forecasting expansion of 1.7% versus the 1.2% seen in May, according
to the latest EU Commission interim economic forecast.
The Commission kept its forecasts for growth in the third quarter
at 0.5%, but raised its forecast for the fourth quarter to 0.6% versus
the 0.5% seen when it published its Spring Economic forecasts in May.
The revised annual GDP forecast is largely due to the unexpectedly
strong growth seen in Q2 which saw GDP rise 1.2% on the quarter, the
highest quarterly growth since Q1 2001.
The Commission forecast for 2010 is slightly more pessimistic than
those from the newly formed Office for Budget Responsibility. The OBR is
currently predicting growth of 0.7% in both Q3 and Q4.
The UK economy is forecast to grow by 1.5% this year and by 2.0% in
2011, according to the consensus independent economic forecast compiled
by the UK Treasury.
The Commission also revised up its projection for the UK’s HICP
inflation rate, which harmonises the criteria for CPI inflation in EU
member states. The Commission is now forecasting an annual rate of 3.0%
in the UK, versus the 2.4% forecast in May. The Commission forecasts
inflation to drop to 2.8% in the third quarter and then to fall to 2.7%
in Q4.
–London newsroom: 4420 7 862 7492; email: ukeditorial@marketnews.com
[TOPICS: M$B$$$,MGB$$$,MFB$$$,MFBBO$]
