The U.K. is set to be the fastest growing economy among the world's seven leading industrialized nations this year, according to a leading economic think tank, who predicts the country would move from recovery into expansion in 2014.
The U.K.-based EY ITEM Club, a forecasting group of non-government economists, predicts the country's economy could expand by 3.1 percent this year, up from an estimate of 2.9 percent back in May. This compares to 2 percent for Canada and 1.8 percent for Germany, it said.
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"The U.K. economy has hit the sweet spot," Peter Spencer, a chief economic adviser at the organization said in a press release on Monday. Business investment has bolstered an economy that has been previously reliant on consumer spending, he said, adding that a strong labor market has also "underpinned" the return to growth.
"What a difference a year makes. Last summer, any growth looked better than no growth and the outlook remained uncertain. But, confidence has now returned and economic uncertainty has dropped well down the worry list," Spencer added.