The Bank of England has upgraded its growth forecast for 2013 from 1.4% to 1.6% and for 2014 from 2.5% to 2.8%.
Governor Mark Carney said "the recovery has finally taken hold".
David Cameron says his economic plan is "on track" despite a Bank of England admission that interest rates could rise sooner than expected.
Today's growth forecast may seem to be good news for the Coalition, but the increasing cost of living could cause problems at the polls.
Most borrowers are not economists. Deciding whether they can afford to borrow has just become more difficult.