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Macroeconomic outlook report: UK

Second quarter of 2018

During the second quarter of 2018, British GDP experienced an acceleration of 0.15 p.p. in its year-over-year growth rate compared to the previous quarter, standing at a rate of 1.22%. As for the labor market, the unemployment rate decreased when compared to 1Q18, standing at 4%, while the employment recorded a 0.90% y/y growth. The sterling pound registered a slight depreciation against the dollar and stood at 1.36 $/£. Lastly, inflation stood at 2.40%, lower than the rate from the previous quarter.

Macroeconomic overview

  • During the second quarter of 2018, British GDP experienced an acceleration of 0.15 p.p. in its year-on-year growth rate compared to the previous quarter, standing at a rate of 1.22%, after accelerations in private consumption and external demand.
  • General government expenditures decreased at a year-over-year growth rate of -0.04%, 0.78 p.p. lower than the rate registered in the first quarter of the year.
  • Regarding the labor market, the unemployment rate was 4%, registering a decrease of 0.20 p.p. compared to the first quarter, while the year-over-year growth rate of employment decreased by 0.38 p.p. to 0.90%.
  • The sterling pound registered a 2.10% depreciation against the US dollar and stood at 1.36 $/£.
  • Inflation stood at 2.40% in the second quarter of 2018, 0.33 p.p. below the rate recorded in the previous quarter, still above the 2% target of the Bank of England.

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© GMS Management Solutions, S.L., 2019. 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.