UK economy 'due to rebound'

Economic activity in Britain is picking up speed, according to economist Paul Tansey, who was speaking today at a breakfast seminar hosted by the Sherry FitzGerald group.

Entitled "London - The Blue Chip Investment Opportunity", the seminar focused on the outlook for both the UK economy and residential property market.

Tansey forecast a rebound in economic growth in the UK in the year ahead.

"The period 2000 to 2004 was a very prosperous period for the UK economy, with Britain emerging as the top performer amongst the large developed European economies. That said, economic performance in 2005 was somewhat disappointing.

"However, recent evidence suggests that the British economy is rebounding well with growth likely to be in the region of 2-2.5% in 2006, accelerating further during 2007 and 2008."

Despite such robust growth, Tansey does not anticipate significant inflationary pressure with CPI inflation likely to remain at or close to the MPC target of 2%.