UK economic growth will recover to 2.5 per cent this year, say economists, while doubts remain over the consuming spending and low productivity.

In the latest reflection of the UK’s robustness, the National Institute of Economic and Social Research (NIESR) said growth had become “entrenched” and unemployment would fall below seven per cent by the end of 2014.

The group also said growth would hit 2.1 per cent in 2015, slightly less optimistic than other forecasts for the country.

But it raised concerns about the impetus behind the economy. Consumer confidence is high and many observers worry that shoppers are creating a new debt bubble.

It also said low productivity posed a threat to the recovery in the medium term.

"Our forecast remains one of a gradual improvement in productivity, but continued stagnation poses a downside risk to the UK's medium-term prospects," NIESR said.

The broadly good news chimes with a clutch of studies, including those by the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD).