UK economy

Article Abstract:

The UK economy grew by 0.1% in both the final quarter of 1998 and the following quarter. Indicators, including the strength of sterling and high oil prices, suggest that GDP growth will be around 0.5% for 1999 and 1-2% for 2000. The employment level continued its rise in late 1998 and early 1999, but the pressure on company profit margins is likely to reduce employment, as well as investment and wages, during 1999/2000. Inflation, which has been around the government target of 2.5%, looks set to fall below this level. This fall will allow interest rates to drop to 4.5% during 2000.

Publisher: Barclays Bank
Publication Name: Barclays Economic Review
Subject: Business, international
ISSN: 0956-5574
Year: 1999

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UK economy: summary

Article Abstract:

The United Kingdom economy has seen stronger household spending, business investment and other activity than expected. Underlying inflation rates have dropped to less than the target set by the government, yet financial markets forecast a rise in rates. There are concerns about the strength of pound sterling, and pressure on profits which could lead to job shedding as a way of cutting costs. Tighter labor markets and strong consumer spending could mean high interest rates and an adjustment that is painful.

Publisher: Barclays Bank
Publication Name: Barclays Economic Review
Subject: Business, international
ISSN: 0956-5574
Year: 1999
Prices, Interest Rates

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Subjects list: United Kingdom, Economic aspects, Economic indicators
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