It is expected that the global economy will increase as the year furthers. The projected growth value is 2.8 percent this year and it could reach 3.4 in 2015 and 3.5 in 2016. It is estimated that high income countries will account for half of the worldwide growth in the years 2015 and 2016 where as they accounted for less than 40 percent in the year 2013 (The World Bank, 2014).
The GDP estimates of second quarter have shown expectations that the British economy has increased beyond its peak in 2008. Another boost which supports these expectations is the IMF forecast upgrade. All this puts Britain on the path of growing more than any other major economy in the world (Stylianou, 2014).
However, it is not just Britain that has received such increases in the projections of IMF. IMF projections have also given positive news to Spain on the day its unemployment rate fell to its lowest level in two years. That was the largest quarterly increase in the number of people who are employed since the second quarter of year 2005 (Stylianou, 2014).
The recovery of the UK seems to be continuing with a growth of around 3 percent in the year to the first quarter of 2014. The main drive for the recovery seems to be the services sector. However, there have been positive news from various other sectors like construction and manufacturing. Several business surveys conducted on all three sectors have found that the growth observed should continue to grow at a good pace during the second of half 2014.
It is found that the increase in GDP has been mainly due the increased employment and the confidence in consumers. Over the past year, fixed investment has also increased as business investment and house building have increased.