The Centre for Economics and Business Research has increased its forecast of economic growth in Britain, predicting GDP would be about £20bn higher by 2020 if the Conservatives gain power.
The Telegraph reports the leading think tank forecast gross domestic product (GDP) would grow by 1.3% and 1.4% in 2011 and 2012 respectively, compared with earlier forecasts of 0.8% and 1.1% growth.
It left its 2010 forecast unchanged at 1.2%, and said the upgrades for the following two years were based on a Conservative victory at the election, and a more buoyant world economy.
Despite the upgrades, the think-tank’s figures are far less optimistic than the Chancellor’s March Budget predictions of 3.25% growth in 2011 and 3.5% growth in 2012, which the CEBR described as “highly optimistic”.
