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Economic growth 'to total 1.3% in 2010'

A new report has predicted that gross domestic product (GDP) in the UK will grow by only 1.3 per cent by the end of 2010.

According to the National Institute of Economic and Social Research (NIESR), slow net trading has brought the figure down, with growth being propelled by government current and capital spending.

However, the group indicated that GDP will continue to rise over the next few years - by 1.7 per cent in 2011 and 2.2 per cent in 2012 – but consumer spending will not reach pre-recession levels until after 2015.

NIESR said in a statement: "From next year the contribution of consumer spending will be less than in the decade before the recession. Growth will be more dependent on the contribution of net trade."

The most recent Distributive Trades Survey from the Confederation of British Industry has suggested that high street sales exceeded expectations in July, with 51 per cent of retailers claiming sales were higher than a year ago.
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