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Macroeconomic outlook report: UK

First quarter of 2018

During the first quarter of 2018, the British GDP experienced a deceleration of 0.22 p.p. in its year-over-year growth rate compared to the previous quarter, standing at a rate of 1.20%. As for the labor market, the unemployment rate decreased when compared to 4Q17, standing at 4.20%, while the employment recorded a 1.43% y/y growth. The pound sterling registered a slight appreciation against the dollar and stood at 1.39 $/£. Lastly, inflation stood at 2.73%, lower than in the previous quarter.

Macroeconomic overview

  • During the first quarter of 2018, the British GDP experienced a deceleration of 0.22 p.p. in its year-on-year growth rate compared to the previous quarter, standing at a rate of 1.20%, after decelerations in investment and private consumption’s growth rates..
  • General government expenditures increased at a year-over-year growth rate of 1.24%, 0.68 p.p. higher than the rate registered in the fourth quarter of the year.
  • Regarding the labor market, the unemployment rate was 4.20%, registering a decrease of 0.10 p.p. compared to the fourth quarter, while the year-on-year growth rate of employment raised by 0.29 p.p. to 1.43%.
  • The pound sterling registered a slight appreciation against the dollar and stood at 1.39 $/£.
  • Inflation stood at 2.73% in the first quarter of 2018, 0.30 p.p. below the rate recorded in the previous quarter, although above the 2% target of the Bank of England.

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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.