Prospects for the UK economy are looking "far rosier", with inflation set to fall rapidly in 2024 and growth to outpace a number of G7 rivals, a forecast suggests, writes John-Paul Ford Rojas.

The report from accountancy giant PwC proposes that 2024 "will be the year the UK turns a page".

The wide-ranging look-ahead even sees sporting success to add to Britain's lustre in the coming 12 months, predicting a third-place finish for Team GB in the medals table at the Paris Olympics.

The report is the second this week to argue that the UK's near-term future looks brighter than doom-mongers suggest.

It says that while gross domestic product (GDP) growth will remain weak, it will sit firmly in the middle of G7 nations when measuring how well countries have done compared to pre-Covid levels.

PwC predicts that UK growth between 2019 and 2024 of 2.7 per cent will put it ahead of France (2.4 per cent), Japan (1.5 per cent) and Germany (1.2 per cent).

But it is expected to trail behind the US, which is forecast to enjoy a 9.6 per cent expansion, Canada 5.2 per cent and Italy 3.7 per cent.

PwC predicts that the UK economy will be 2.7 per cent bigger in 2024 than it was in 2019, outperforming France, Japan and Germany.

And it also forecasts that inflation will hit the Bank of England's 2 per cent target by early 2025. That is a more optimistic outlook than that of the Bank itself which does not expect the target to be reached until late 2026.

Falling inflation should help many of those worst hit by the cost of living squeeze feel better off in real terms as their money goes further, especially with the increase in the national living wage to £11.44 an hour.

The report also sees house prices falling by only 2 per cent, a milder decline than some others were predicting.

PwC chief economist Barret Kupelian said: "Following the post-pandemic challenges, 2024 will be the year the UK turns a page.

"Inflation returning closer to normal levels, progress on regional growth and real incomes improving provides optimism for the year ahead, despite the legacy of higher consumer prices and rising housing costs.

"There remain many 'known unknowns' in 2024 that can change the trajectory of the UK, such as volatility in global energy prices due to the continued Middle Eastern conflict and the forthcoming General Election - however, overall the outlook is far rosier for 2024 than expected 12 months ago."

Britain will also be looking to demonstrate its prowess in the sporting arena, with England fans hoping Harry Kane and Jude Bellingham can bring success in the Euro 2024 football tournament and with the T20 cricket world cup and Paris Olympic Games also due to take place.

"Our modelling indicates that Team GB will build upon its strong performances since London 2012 as it climbs to third place in the total medal tally," the report says.

Earlier this week, a Centre for Economics and Business Research report predicted UK output would be 10.2 per cent higher than France this year and extending its lead to 19.9 per cent in 2038.

The UK is also emerging from high inflation, which has fallen from 11.1 per cent to 3.9 per cent.