Top economic forecasters are predicting an export boom for Britain next year that would provide a powerful pre-Election boost for George Osborne.
The ITEM Club forecast, backed by leading accountant EY (formerly Ernst & Young) will today issue its summer report, which will argue the economic recovery is real and solid and that exports could jump by almost 5% in 2014, according to the Mail on Sunday.
The Club, which is independent, but bases its forecasts on the Treasury's own economic model, will predict the economy will grow 1.1% this year rising to 2.2% in 2014.
Peter Spencer, chief economic adviser to the Club, said: "It is looking much more positive and we are unlikely to see a repeat of 2011 when confidence was crushed by the euro crisis."
But the most welcome facet of the report for the Chancellor will be its emphasis on the export recovery, seen by many as vital for balanced growth in the UK economy, which critics fear has been too dependent on debt-fuelled consumer spending and the housing market.
"There are hopeful signs for the world economy, which will lead to a pick-up in demand from the UK's key export market," said Spencer, arguing the US has largely resolved its budget crisis and China is starting to seek goods and services.
"If managed successfully, these factors could see a real boom for UK exporters," he added.
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