UK economy predicted to grow 1.3 per cent

Offshore account holders have been told that the UK's economy could be set to grow by 1.3 per cent in 2010.

According to the National Institute of Economic and Social Research, this would be followed up with growth of 1.7 per cent next year and 2.2 per cent in 2012.

"Growth will be more dependent on the contribution of net trade, while public spending will pose a drag on economic growth for longer than had previously been expected," commented the organisation.

It added that growth will be negatively affected by public spending cuts each year until 2015.

However, offshore account holders may be pleased to learn that inflation could fall over the next couple of years, with an average of three per cent in 2010 and 2.7 per cent next year.

Earlier this month, the Bank of England's Monetary Policy Committee voted in favour of holding interest rates at their current record low level of 0.5 per cent for a further month.

Britannia International Ltd 28-07-2010

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