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Macroeconomic outlook report: UK

Fourth quarter of 2019

In the fourth quarter of 2019, UK GDP slowed by 0.19 p.p. year-on-year to 1.06%. As for the labor market, the unemployment rate decreased with respect to 3Q19, registering a rate of 3.80%. The year-on-year growth rate of employment accelerated to 1.03%. The pound sterling depreciated against the dollar and stood at an average exchange rate of 1.29 $/£. Finally, inflation was 1.43%, 0.40 p.p. lower than in the previous quarter.

Macroeconomic overview

  • During the fourth quarter of 2019, British GDP slowed by 0.19 p.p. year-on-year in comparison with the previous quarter, to 1.06%, after a decrease in gross fixed capital formation and net exports
  • In the labor market, the unemployment rate was 3.80%, 0.03 p.p. lower than in the third quarter of 2019. The year-on-year growth rate of employment accelerated by 0.04 percentage points to 1.03%.
  • The pound sterling slightly depreciated against the US dollar by $0.06 per pound and stood at an average exchange rate of 1.29 $/£ during the fourth quarter of the year.
  • Inflation stood at 1.43% in the fourth quarter of 2019, 0.40 p.p. below the rate recorded in the previous quarter, and below the Bank of England's 2% target.

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© GMS Management Solutions, S.L., 2020. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.