The year ahead

The economy is expected to pick up in 2015, according to the latest forecasts collated by the Treasury.

Gross domestic product (GDP) is forecast to rise by between 1.9% at the bottom end of the range up to 3.0% at the top end. The median (midpoint) forecast from the 37 forecasters is for growth of 2.5%. That is higher than the 2.4% forecast produced by the Office for Budget Responsibility (OBR) for chancellor George Osborne in his Autumn Statement last December.

Inflation forecasts for the final quarter of 2015 show a range for RPI inflation of 1.2% up to 3.6%, with a median figure of 2.7%. The OBR forecast is for a 2.5% rise.

The forecasts for average earnings growth give a mixed message on how workers’ living standards will fare as the range for the year is for rises of between 2.0% up to 3.7% and a median figure of 2.4%. The OBR forecast is for 2.0% growth.

https://www.gov.uk/government/collections/data-forecasts