UK economic growth is set to cool in 2008, according to the National Institute of Economic and Social Research, a UK thinktank.

In its latest quarterly survey, the Institute says that weakening global demand would impact on Britain’s trade, dragging down domestic growth.

The NIESR now predicts that growth in 2008 will fall to 2.2% from its July prediction of 2.6%

“The downward revision for next year reflects a bigger drag from net trade than previously forecast and has little to do with the recent financial turmoil,” says NIESR.  The Northern Rock crisis would have little impact on the UK economy it believes.