One of the U.K.’s top business lobby groups has upped its growth forecast for the British economy in 2014, but warned that political uncertainty remained a “major risk” to the country’s recovery.
Encouraging signs that the recovery is becoming more broad-based led the Confederation of British Industry (CBI) to raise its 2014 and 2015 growth estimates for the U.K. on Monday. It now expects the U.K. economy to expand by 3 percent this year and by 2.7 percent in 2015, up from previous expectations of 2.6 percent and 2.5 percent respectively. The group also said it expected interest rates to start rising in the first quarter of 2015.
In the first quarter of this year, Britain posted GDP growth of 0.8 percent quarter-on-quarter, marking the fifth consecutive quarter of expansion.
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