UK 'to see more robust growth in 2013'
The UK's economic recovery may start to gather pace next year, new estimates suggest.
According to the National Institute of Economic and Social Research (NIESR), Britain's economy is currently very weak. Indeed, the Office for National Statistics recently confirmed the UK is experiencing its first double-dip recession in more than 30 years.
NIESR has stated that while the country is not experiencing a "sustained recovery", conditions may start to improve from the start of 2013 onwards. The organisation said "more robust growth" is likely to be seen from this period, with a "sustained period of above-potential growth from 2014".
Of course, the amount of foreign direct investment in the UK and online money transferactivity between Britain and other countries depends to a great extent on global economic conditions.
However, NIESR is confident that the worldwide economy will also pick up over the coming years. Estimates suggest that 3.7 per cent and four per cent growth will be seen around the globe in 2012 and 2013 respectively.
"In 2013, we will see some rebalancing of global growth, as the euro area recovers somewhat, growth picks up further in the US and China continues to slow," it commented.
NIESR added that while the ongoing financial crisis in the eurozone will eventually be resolved, the area is likely to go through a mild recession. Economic expansion is expected to be inhibited by continued fiscal austerity across the continent, although the group believes existing structural problems are likely to remain an issue in the medium to long term.
However, the outcomes of recent elections in Greece, France and Italy show that the austerity approach is not going down well with voters. Furthermore, the governing parties in the UK's coalition government fared badly in last week's local elections. As a result, many businesses and investors may be expecting to see a new fiscal approach adopted throughout the continent in order to win back public support.