BRITAIN'S growth forecast has been upgraded by more than any other G7 country over the next two years.
It comes as the country's global outlook has been pared back by one of the world's leading economic bodies.
While the Paris-based Organisation for Economic Co-operation and Development gave Chancellor George Osborne a boost before his autumn statement next month, it urged the Coalition to build more houses and warned its Help to Buy scheme needed to be closely monitored to prevent a housing bubble.
The OECD revised down its global GDP prediction for 2013 from 3.1% to 2.7% because of weaker prospects in emerging markets, although it said this would pick up speed by 2015.
The economic forecaster pointed out how the global recovery was "real" but moving at a "slow speed". Yet it warned there could be further turbulence ahead, noting that political brinkmanship over the economy in the United States could derail progress.
But it revised its 2013 estimate for the UK upwards from 0.8% to 1.4% and from 1.5% to 2.4% for next year, stressing how the UK Government should maintain its austerity programme.
"While headline deficits are expected to shrink as growth recovers, it is important to maintain existing consolidation plans to restore fiscal stability."
The report said there had been a "turnaround in private sector confidence" in the UK and "growth is projected to strengthen further in 2014 and 2015, mainly supported by an upturn in gross fixed investments and exports".
A Treasury spokesman said the report provided "more evidence the UK's hard work is paying off and the country is on the path to prosperity".
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