Running start to 2013 with higher growth estimate

A GROWTH forecast for the three months up to April has been revised up to one per cent by the National Institute of Economic and Social Research (NIESR).

Researchers initially suggested that the economy had expanded by 0.8 per cent, the strongest since mid-2010, but have now boosted their prediction.

The NIESR’s first forecast for the three months to May is slightly lower, at 0.6 per cent, with production and private services driving the rise. They continue to project growth of 0.9 per cent for this year, followed by expansion of 1.5 per cent in 2014.
In total, the NIESR says GDP has grown by 4.2 per cent in four years, but industry, agriculture and construction remain below their 2009 level. Public and private services have seen their output since 2009 rise moderately, by four and 5.9 per cent respectively.

The institute remained sceptical about the prospect for a quick recovery, stressing that output was unlikely to return to the pre-recession peak seen in 2008 for another two years.