Belfast Telegraph

Recovery is on, but housing is a danger

By James Tapfield

A respected international think-tank has upgraded its growth forecast for the UK to 3.2% this year – but warned that action may be needed to cool the housing market.

The Organisation for Economic Co-operation and Development (OECD) revised its estimate from 2.4% last November, saying it believed the recovery had now "taken hold".

But it cautioned that consumer spending remained the main driver of growth, and urged the Government to consider measures to ensure "balanced" house price rises.

Globally, the body reduced its 2014 growth forecast from 3.6% to 3.4%, with the US and China downgraded to 2.6% and 7.4% respectively.

The OECD said the recovery in the UK had "taken hold" and growth was now "robust", although it noted that consumer spending was still the main driver.

But while Prime Minister David Cameron welcomed the the revision, OECD secretary-general Angel Gurria said: "We are still not out of the woods yet."

Belfast Telegraph