UK economy ‘to grow 1.1%’

<p>The UK economy has been predicted to grow by 1.1 per cent this year.</p>

A new report has predicted economic growth of 1.1 per cent for the UK in 2013.

After growth of 0.2 per cent was recorded in 2012 and the economy expanded by 0.3 per cent in the first quarter of the year, the Ernst and Young ITEM Club predicts this will rise further for the year as a whole.

It explained that the growth of the economy will be driven by an improving housing market, as well as the consumer.

"As a result, UK GDP growth will accelerate to 2.6 per cent in 2015 and stay at around that level through to 2017," the body said in a statement.

It added how the US manages the tapering-off of its support for the markets is likely to have an impact on the state of the UK economy.

Markets around the world were hit last month when Federal Reserve chairman Ben Bernanke suggested the quantitative easing scheme could be wound down next year.

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