Net trade — the UK’s balance of imports and exports — dragged on GDP over 2012, but as demand from the economic powerhouses of the US and China improves, UK exports should increase by 1.2pc this year and 4.6pc in 2014. Meanwhile, as firms grow in confidence, they should stop hoarding their cash and start spending on investment and recruitment. In the meantime, ITEM says consumer spending and housing market activity will support growth.