What’s in store for UK economy in 2011?

The UK economy is expected to grow by 2.0% in 2011, according to a Treasury compilation of independent and City forecasts. That is slightly less than the government’s forecast of 2.1% growth given by the Office for Business Responsibility in November.

On inflation, the range of forecasts for RPI inflation in the final quarter of next year is from 2.4% up to 4.6% with a median (midpoint figure) of 3.7%.

Average earnings for the calendar year 2011 are expected to rise from just 0.7% up to 4.3% — the median figure is for 2.6% growth.

www.hm-treasury.gov.uk/d/201012forecomp.pdf