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Macroeconomic outlook report: UK

First quarter of 2020

In the first quarter of 2020, UK GDP registered a contraction in its year-on-year growth down to -1.60%. As for the labor market, the unemployment rate increased with respect to 4Q19, registering a rate of 3.93%. The year-on-year growth rate of employment accelerated to 1.37%. The pound sterling depreciated against the dollar and stood at an average exchange rate of 1.28 $/£. Finally, inflation was 1.67%, 0.24 p.p. higher than in the previous quarter.

Macroeconomic overview

  • During the first quarter of 2020, British GDP decreased by 2.66 p.p. its year-on-year in comparison with the previous quarter, down to -1.60%, after a decrease in the domestic demand, which was heavily affected by the Covid-19 pandemic.
  • Regarding the labor market, the unemployment rate stood at 3.93%, 0.10 p.p. higher than in the fourth quarter of 2019. The year-on-year growth rate of employment accelerated by 0.34 percentage points up to 1.37%.
  • The pound sterling slightly depreciated against the US dollar by $0.01 per pound and stood at an average exchange rate of 1.28 $/£ during the first quarter of the year.
  • Inflation stood at 1.67% in the first quarter of 2020, 0.24 p.p. above the rate recorded in the previous quarter, and below the Bank of England's 2% target.

For more information, click here to access the executive document in pdf.

© 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.