NIESR revises down 2013 growth forecast for UK

UK think-tank NIESR has revised down its growth forecast for the UK next year, despite a strong third quarter which has seen the economy emerge from recession.

The National Institute for Economic and Social Research (NIESR) is now forecasting 1.1% growth in 2013, down from 1.3%, due to a weaker global outlook.  NIESR has forecast GDP will dip by 0.1% for 2012 as a whole, up from its August forecast of a 0.5% contraction, after surprisingly strong expansion in the third quarter. It also found the UK's labour market has remained remarkably resilient compared both to previous recessions and to other countries such as US. "Risks to the UK economy are dominated by the external environment. Despite the uncertainty about the US ‘fiscal cliff' an...