The UK economy is expected to expand by 2.3% throughout the course of 2016, with 6-7% house price growth.
Top performing G7 economy
The National Institute of Economic and Social Research (NIESR) forecasts 2.3% UK economic growth in 2016 – higher than the 2.2% experienced in 2015.
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Established in 1938 and located in London, NIESR is Britain’s oldest independent research institute and think-tank.
NIESR said an expected fall in demand for exports from emerging market economies would be offset by the boost to domestic consumption from falling oil prices.
The UK was one of the fastest growing G7 economies at the end of the year, and this has continued into 2016. Unemployment is falling, the housing market is in a strong position and consumer confidence is high.
UK house prices are also forecast to increase by 5-7% in 2016 – far higher than the 1% consumer price inflation and average earnings growth of 3% (PwC).