Forecasters Upbeat on UK Economy Prospects

24 October 2006

LONDON: Financial seers expect the UK economy to remain buoyant and growing next year. Accountants Ernst & Young's Item Club economic forecasting group says growth is likely to be 2.9% in 2007, compared to its previous 2.6% prediction.

However, it did warn that interest rate rises would be necessary to stop "credit expansion and asset price inflation spilling over into excessive demand and inflation".

Official figures show UK GDP is growing by 2.8%.

Data sourced from BBC Online; additional content by WARC staff