'Don't get too excited': Thinktank tempers upbeat UK growth outlook

clock

The future of the UK economy may not be as bright as some have predicted, with the weakest recovery in "industrial history" limiting annual growth to 1% in the longer term, according to a thinktank.

Higher government spending and an ageing population are among the factors that will render the sustainable growth rate far lower than the 2.5% the Treasury thought typical between the 1980s and 2000s, according to the Institute of Economic Affairs (IEA). Its assertions, published in a discussion paper entitled ‘Will flat-lining become normal?', play down recent upbeat news on the economy, culminating in the OECD lifting its 2013 growth forecast for the UK to 1.5% and Chancellor George Osborne declaring this week it had "turned a corner". But economists writing in the IEA paper said th...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

News editor's view: Burnham's Britain arrives

News editor's view: Burnham's Britain arrives

The news editor's Friday Night Takeaway from 24 July

Isabel Baxter
clock 24 July 2026 • 3 min read
UK inflation drops to 2.6% to bring 'fleeting' relief as fuel prices fall

UK inflation drops to 2.6% to bring 'fleeting' relief as fuel prices fall

BoE rate hike priced in for 2026

Michael Nelson
clock 22 July 2026 • 2 min read
Andy Burnham to launch ten-year plan for UK

Andy Burnham to launch ten-year plan for UK

Cost of living measures to be set out

Jaskeet Briah
clock 20 July 2026 • 3 min read