Publishing its quarterly economic forecast, the CBI said rising exports, resilient consumer spending and greater business investment meant there would be an upward revision of 0.2% on previous predictions.
It also upped its forecast for 2005 to 2.8% from 2.7%.
The CBI is also predicting further increases to the interest rate.
By the end of 2004 it estimates the Bank of England will have increased the rate to 4.5% and it will peak next year at 2005.
CBI chief economist Ian McCafferty said: ‘The economy should grow robustly this year and next as exports benefit from the gathering momentum in the global recovery.’
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Accountancy watchdog the FRC has dropped its investigation into the former chief financial officer of Tesco, nearly two years after the supermarket was engulfed in an accounting scandal
Colin imagines how Apple's logo might change in the wake of the EC's ruling over its Irish tax arrangements
Charles Tilley's departure from CIMA leaves the accounting world quieter, but his institute with an exciting foundation