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The UK outlook strengthened further during 1H14. The economy continued to expand at a strong pace with quarterly GDP rising by 0.8% in both 1Q and 2Q this year, marking five successive quarters of growth between 0.7% and 0.8%. Expectations for strong GDP for the year persist, with market consensus anticipating annual growth of circa 3.1% growth p.a. Most significantly, the latest figures show that GDP is now 0.2% above its pre-crisis peak, which was reached in the first quarter of 2008. Last month the IMF raised its forecast for UK GDP growth this year to the highest it is predicting for the G7 nations. Looking ahead to 2015, GDP is expected to maintain its current momentum and grow by a robust 2.8% p.a. This confirms that the UK economic recovery is fully entrenched and maintaining the pace set in 1H14.
Source : UBS AG