5yearsInvestment bankers Goldman Sachs make 5 predictions for the UK economy in 2014. The company was recently voted the most accurate UK forecaster of 2013 by The Sunday Times.

  1. 3% growth marking sustained recovery in 2014 driven by the ongoing recuperation of the banking sector and demand from trade partners
  2. Worker productivity to improve compared to 2013, with unemployment falling to 7% by mid-2014 from 7.4% now
  3. Inflation to remain at 2%
  4. Bank of England to keep interest rates at 0.5%
  5. Scotland to stay part of the UK following the referendum on independence on the 18 September 2014

The strength of Sterling may damp down the mood but in general the outlook is positive.

Hear more on the UK economy from Kevin Daly, Chief UK Economist at Goldman Sachs Group Inc in this Bloomberg interview and read James Titcomb’s article in The Telegraph.