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British economic expansion to slow as general election nears
THE UK’s economic growth will slow next year but should remain at strong levels, a leading group of economists said today.
In the second quarter of 2014 the UK had the fastest growing economy of any G7 nation, growing 3.2 per cent year-on-year.
However, uncertainty surrounding May’s general election and the possibility of a referendum on European Union membership are expected to dampen business investment, says the Item Club, sponsored by EY.
The club is expecting business investment to grow by nine per cent in 2014, but believes this will cool to 5.8 per cent in 2015.
It forecasts the economy will grow 3.1 per cent in 2014, slowing to 2.4 per cent in 2015.
The troubled Eurozone economy is also expected to hinder growth.