Britain’s economy will grow less than previously forecast this year and further bond purchases by the Bank of England may do little to stimulate the recovery, according to the Ernst & Young Item Club.
Gross domestic product will rise 0.6 percent, compared with a January forecast of 0.9 percent, the London-based group said in a report today. Growth will accelerate to 1.9 percent next year and 2.5 percent in 2015, in line with previous estimates.
“With the rebalancing of the U.K. economy on hold, we’re once again relying on the consumer to see us through,” Peter Spencer, chief economic adviser to the Item Club, said in a statement. “Unless we see a dramatic turnaround in Europe, U.K. growth is likely to remain sluggish at best.”
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