UK importers are set to benefit from sterling being considerably stronger than the euro.

The UK and Euroland are likely to see a period of renewed convergence in 2002 and 2003 after a period where it looked like their economic worth might clash.

This information comes from a report from accountants PricewaterhouseCoopers.

In 2001, growth in the UK held by 2.2 per cent, compared to just 1.5 per cent in Euroland. However, in the past six months, growth in both areas was close to nothing.

Despite this, both economies are beginning to recover, with the UK tipped as likely to outperform the euro.

Brian Woods-Scawen, chairman of the Midlands branch of Pricewaterhouse Coopers, said: 'Although we see some renewed convergence in the UK and Euroland economies, there are important structural differences remaining. So the possibility still exists that the two economies will react differently to economic shocks, causing future economic cycles to diverge again.'