Turning for the worse
Article Abstract:
The United Kingdom economy saw growth above the long-term average in 1997, at 3.3% compared to a 2.25% average. Unemployment dropped to 5% by year-end 1997. There is concern that capacity constraints could arise, especially in terms of labor, which could lead to inflation. Exports are likely to be affected by the strength of pound sterling and the Asian financial crisis, and this is likely to affect economic growth in 1998. Private sector domestic demand has been strong, and consumer spending continued to be strong in early 1998. The government aims to keep tight control of spending in its Mar 1997 Budget.
Publication Name: Barclays Economic Review
Subject: Business, international
ISSN: 0956-5574
Year: 1998
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Summary
Article Abstract:
The United Kingdom economy performed well in 1997 with unemployment dropping to 5% at the end of the year, and gross domestic product (GDP) up by 5%. Underlying inflation averaged 2.8%, while there was a surplus on the current account. Pressure on manufacturing was evident from the end of 1997 and is likely to continue in 1st half 1998. Average earnings growth has risen as labor markets have tightened. Economic growth is likely to be slower in 1998 than in 1997, and the labor market may continue to tighten. Interest rates may rise further, and consumer spending will have to ease before rates are cut.
Publication Name: Barclays Economic Review
Subject: Business, international
ISSN: 0956-5574
Year: 1998
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UK economy
Article Abstract:
The UK economy is seeing higher output growth in 1996, boosted by an increase in real incomes and consumption. Consumption could be boosted by a drop in the savings ratio as the housing market recovers. Exports have been affected by weak demand in mainland Europe, but this should change in 1997. Government borrowing levels mean that tax cuts are not supported by economic factors. Inflation may drop to 2.5% but could then rise again, and interest rates are likely to rise in 1997.
Publication Name: Barclays Economic Review
Subject: Business, international
ISSN: 0956-5574
Year: 1996
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