UK growth to fall short of forecasts, says NIESR

Soaring oil prices combined with the coalition's austerity measures will knock 0.8% off Britain's economic growth this year, dragging GDP below the official estimate, the National Institute of Economic and Social Research (NIESR) said. It estimates growth will be only 1.4%, instead of a possible 2.2%. This is less than the Office for Budget Responsibility's latest forecast of 1.7%, although economists expect the OBR will revise that forcast after official figures last week revealed the economy grew by only 0.5% in the first quarter of the year. NIESR said that growth this year woul...