The UK economy is set to outperform most major developed statesin 2014, and will continue to expand at a robust clip in 2015.
In light of positive structural economic reforms undertaken by thegovernment, coupled with flexible monetary and exchange ratepolicies, we remain bullish on the long-term economic prospectsfor the UK relative to the eurozone over the longer term.
Despite numerous ructions between the ruling Conservatives andLiberal Democrats, we expect the coalition government to hold firmthrough to the next parliamentary election in 2015.
Major Forecast Changes
We have revised up our 2014 real GDP forecast to 3.1% from 2.9%previously