The UK economy will finally surpass its pre-recession peak next year, says the British Chambers of Commerce (BCC).
The UK’s economic output peaked in the first quarter of 2008. The BCC says it expects the economy to surpass that level in the second half of 2014.
It also says that the UK’s GDP is now set to grow by 2.7% in 2014, an upgrade from a previous prediction of 2.2%.
BCC head John Longworth welcomed the improvement but warned that longer-term problems were “still looming”.
Mr Longworth said: “It is really great that next year the UK economy is finally expected to bounce back from the deepest recession in modern times.”
But he added: “As household consumption slows in the medium term, we have to find ways of boosting business investment and exports, as rebalancing our economy is critical to our long-term economic future.
“If we make important decisions to fix the long-term structural failure in business finance, continue to deliver a major infrastructure upgrade and do more to support exports, it is possible to achieve not just a good recovery, but a truly great and sustainable economy.”