Mr Cruz added that the UK would be boosted by a “recovery in real incomes amid falling inflation”.
UBS’s forecast is in line with the latest forecasts from the International Monetary Fund (IMF), which project the UK to grow faster than Germany almost every year until 2028.
The world watchdog also expects the UK’s growth rate to outpace the euro zone in four of the next five years.
Deutsche Bank economist Sanjay Raja expects the UK economy’s remarkable resilience this year to continue into 2024, preventing GDP from contracting and allowing a stronger recovery to take hold in the second half of the year.
“There are good reasons to be optimistic that we can avoid a recession,” he said.
“We will see a period of sustained positive growth in real wages as inflation falls rapidly, which in itself will be a boon for households.”
Part of the growth has been achieved thanks to falling energy prices, making it cheaper and providing a tailwind for households and businesses.
Mr. Raja said the unexpected surge in migrants was also boosting GDP, as a larger population means more economic activity.
At the same time, the UK has proven surprisingly resilient to rising interest rates, Mr. Raja said.
“Household and corporate balance sheets remain very strong,” he said.
“It is not only the situation of excess savings that gives households and businesses some confidence that they can weather the shocks and headwinds of monetary and fiscal policy tightening.
“The fact is that debt ratios are still fairly low by historical standards when compared to previous decades.”
In contrast, the euro area is already considered to be in recession.