The UK economy remains ahead of other leading markets thanks to strong roots in its recovery, according to a leading global think-tank.
Despite the Organisation for Economic Co-operation and Development (OECD) cutting growth projections for G7 nations, the cut for Britain was significantly less than elsewhere.
The UK is on course to expand at the fastest rate in 2014 and is second only to the United States for growth in 2015.
Growth predictions for the UK were cut to 3.1% for this year – down 0.1% – while 2015 estimates were raised by the same amount to 2.8%.
Ahead of other major nations
Other major economies were severely downgraded, with the US lowered by 0.5% this year, and 0.4% next, while Germany was lowered by 0.4% and 0.6%.
France was downgraded by 0.5% across both years while Italy saw predictions lowered by 0.9% for thisa year and 1% for 2015.
The OECD described UK employment growth as ‘solid’ with growth expected to continue at a ‘healthy pace’ through next year.
Despite positives surrounding the UK, the OECD identified Europe as a particular point of concern – slashing growth rates from 1.2% to 0.8% for this year, and from 1.7% to 1.1% for 2015.
Calls for action in Europe
The think-tank claimed efforts are needed to boost demand and has called on the European Central Bank to take action against deflation.
Beyond Europe, strong growth is expected in both China and India, with the former having estimated growth of 7.4% in 2014, declining slightly to 7.3% next tear.
India meanwhile has growth of 5.7% this year which is expected to grow to 5.9% the year after, as both countries continue to boost their major sectors.
Many growth predictions for the UK are based on strong consumer spending but this requires people to have a strong understanding of their finances.
Planning for the future
While there is no issue with people choosing to spend, it is recommended that some money is set aside to budget for potential interest rate increases.
This could see costs rise so setting money aside would provide some level of financial cover, even if only for the short term.
Financial management is extremely important so keeping spending in check with a prepaid card is a great way of ensuring you don’t spend more than you would like.
A prepaid card limits spending to the amount on the card at any given moment and is not directly linked to a bank account making funds safer.
The cards can easily be topped up or replaced if required while accounts can be checked regularly online if needed.