Economist predictions for the UK in 2011

Economics research firm IHS Global Insight has revealed its predictions for the UK economy in 2011, forecasting GDP growth of 1.8% and average CPI inflation of 3.2% over the course of the year.

The group's key predictions are: • GDP growth in 2011: 1.8%. • Consumer Price Inflation to average 3.2% in 2011 and stay above 3% for most of the year. • Unemployment to rise to 2.68 million by end-2011 and peak at 2.75 million in first half of 2012. • Bank rate to edge up to 0.75% at end-2011. • No more quantitative easing • Government to modestly miss its fiscal target for 2011/12 but not tighten fiscal policy further. • House prices to fall by further 6% in 2011, bringing losses from 2010 peak levels to 10%. Howard Archer, the firm's chief UK and European economist, says he...