Forecasts for economy in medium term

The economy is expected to grow on average by 1.1%, according to the Treasury’s round-up of around 40 independent forecasts.

The range of forecasts for gross domestic product (GDP) goes from just 0.4% growth up to 2.1%. Medium-term forecasts then see the economy expanding by 1.7% in 2014, with further expansion of 2.0% and 2.1% in 2015 and 2016 respectively.

Inflation, as measured by the Retail Prices Index, is forecast to be running at 2.7% next year. Inflation is expected to rise over the following years by 2.5%, 2.9% and then 3.1% in 2016.

If the consumer prices measure (CPI) is used, the average of forecasts for next year is 2.3% and then averaging either 2.1% or 2.2% over the next three years.

There are no medium-term forecasts for average earning, but the average (midpoint) figure for 2013 is 2.3%, with the forecasts ranging from 1.1% growth up to 4.0%.

www.hm-treasury.gov.uk/d/201211forcomp.pdf