The UK economy is set to grow by 1.7% this year, according to a new report by the World Bank, up from a forecast of 1.2% in January – though down 0.1% on 2016.
UK quarterly growth was 2.0% for Q1 2017, up from 1.9% in Q4 2016.
The figures come on the back of strengthening global growth, predicted to reach 2.7% in 2017, up from 2.4% in 2016.
Eurozone growth is also predicted to rise by 1.7% this year, down slightly from 1.8% in 2016. Both the UK and the Eurozone are predicted to see growth of 1.5% in 2018.
According to the World Bank’s June 2017 Global Economic Prospects report, overall growth in advanced economies is expected to accelerate to 1.9% in 2017.
The World Bank’s Global Economic Prospects report says the global upturn is due to an improvement in manufacturing and trade, rising market confidence, and stabilising commodity prices.
Growth in emerging market and developing economies as a whole will rise to 4.1% this year from 3.5% in 2016, while global trade growth has surged to 4% after a low of 2.5% last year.
The UK’s short-term forecast upgrade reflects unexpectedly resilient activity around the turn of the year, according to Franziska Ohnsorge, lead economist of the World Bank’s Global Economic Prospects group.
“For the medium-term, our forecast upgrade to the Euro area, which is the UK's main trading partner, is expected to have marginally positive spillovers to the UK, despite uncertainties related to Brexit discussions,” she said.
“Possibly the most important risk to UK growth in the next two years arises from the possibility of unexpected events around the Brexit negotiations.
“In addition, since the UK is a highly open economy, it remains vulnerable to adverse events in global financial markets – whether they are related to monetary policy developments in major advanced economies, a credit event in one or more large emerging markets, or a shock to global risk sentiment – and to disappointing growth in major economies.”