The latest report from the Ernst & Young forecasting group, out o/n, says the UK economy will grow by 2.4% in 2015, well below the 3.1% growth expected this year
It says the forthcoming election and accompanying political uncertainty will hold business back from investing. Growth will also be constrained by worries about the Eurozone and the Ukraine conflict.
The 2.4% figure undershoots forecasts issued by the Bank of England, the CBI and the IMF which sees 3.5% this year and 3% next, 3% then 2.7% and 3.2% / 2.7% respectively
The Item Club also highlights that
Consumer spending remains subdued by falling real wages – a situation that has helped to keep inflation at bay. With falling global commodity prices helping to keep input prices down, we expect CPI inflation to slow to an average of just 1.3% in 2015, and to stay below 2% until 2017.
All points we know that are dropping into the evergrowing melting pot
Full Autumn Report from E & Y here
UK contributions to GDP
