UK's recovery continues at pace

The economic recovery is set to continue over the next 12 months, suggests a poll of economists.

According to the Financial Times survey, the 100 analysts predict that 2014 will prove a strong year for the UK economy and could help to boost long-term growth.

Many of the experts believed that there are increasing signs that the UK could start to move ahead of its European counterparts as UK-based businesses become more confident.

Neville Hill, economist at Credit Suisse, explained: “UK growth should be strong in 2014. The speed-up of 2013 looks broad-based across sectors and sources of demand. The main reason to be optimistic is the shift in corporate mood.”

Last month, the Treasury’s economists predicted a growth of 2.4 per cent for 2014, up from previous estimates of 1.4 per cent. There are some suggestions that this could increase to close to three per cent if the positive signs remain over the coming months.

The upbeat forecasts follows the New Year statement from the prime minister, in which he suggested that recovery is happening but needs to be carefully managed to ensure it continues.

David Cameron stressed that the forthcoming referendum on Scottish independence could also have a significant impact if voters return with a yes vote in September.  He also focused on the need to ensure low deficit and ongoing financial management to encourage the ongoing recovery.

In addition, the Centre for Economic and Business Research (CEBR) recently forecast that Britain may overtake France and Germany to become the largest economy in Europe over the coming years.

The UK is currently the sixth biggest world economy and its GDP may rise from £1.59 trillion to £2.64 trillion by 2028.

Germany's financial situation remains more restricted due to the weak euro and an ageing workforce and France's high tax rates and large public sector are constraining the country’s prospects. The CEBR also raised concerns that Italy and Spain are set to move down the rankings.