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Macroeconomic outlook report: UK

Fourth quarter of 2017

During the fourth quarter of 2017, UK economy recorded a deceleration of 0.36 p.p. in the year-over-year growth rate of the GDP in comparison with the previous quarter, registering a rate of 1.42%. This performance was driven by business services and finance. With regards to the labor market, the unemployment stood at the 4.30%, while the year-over-year growth rate of employment increased up to the 1.14%. The sterling pound registered a slight appreciation against the dollar, standing at 1.33 $/£. Finally, the inflation registered a 3.03% rate.

Macroeconomic overview

  • During the fourth quarter of 2017, UK economy recorded a deceleration of 0.36 p.p. in the year-over-year growth rate of the GDP in comparison with the previous quarter, registering a rate of 1.42%. This performance was driven by business services and finance. This rate implied an average growth rate of 1.79% for the UK economy in the year 2017.
  • General government expenditures increased at a year-over-year growth rate of 0.56%, 0.43 p.p. higher than the rate registered in the third quarter of the year.
  • Regarding the labour market, the unemployment rate stood at 4.30%, same rate than the one registered in the third quarter. The average annual unemployment rate was 4.42% in 2017. Moreover, the year-over-year growth rate of employment increased up to 1.14% in the fourth quarter, 0.12 p.p. higher than the rate registered in the previous quarter.
  • The sterling pound registered a slight appreciation against the dollar, standing at 1.33 $/£. This exchange rate supposed an appreciation of 6.86% with respect to the same quarter of 2016, due to the reduction of uncertainty regarding Brexit.
  • The inflation rate stood at 3.03% in the fourth rate of 2017, 0.20 p.p. over the rate registered in the previous quarter and above the Bank of England’s 2% target.

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© GMS Management Solutions, S.L., 2018. 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.