With GDP expansion at 3.1 percent expected for 2014, Britain is set to achieve the strongest growth rate among the Group Seven (G7) economies, said the EY ITEM Club Monday.

British GDP growth rate is higher than the 2 percent for Canada and 1.8 percent for Germany, according the EY ITEM Club's Summer Forecast report.

Besides consumption acting as the main driving force of the economic recovery in the first half of the year, businesses are now expected to pick up the baton with capital investment by firms set top surprise on the upside, said the London-based economic think-tank.

Companies' capital spending might expand significantly by 12.5 percent in 2014, foretasted the report. And consumer spending might grow moderately at 2.5 percent in 2015.

Meanwhile, British unemployment will continue its descent, falling from 6.5 percent in the three month to May 2014, to 5.6 percent by the end of 2015, expected the EY ITEM Club.

"Business investment is being ramped up generating over half of the growth over the last year and helping to rebalance the economy away from consumption," said Peter Spencer, chief economic adviser to the EY ITEM Club.

The EY ITEM Club also expects the first interest rate hike by the central bank no later than early 2015, as wages will only recover slowly this year, holding back the hawkish tones among the policy makers. Endi

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