United Kingdom

Improve workforce skills
Growth has slowed sharply, largely due to weaker consumption related to the ending of the house price boom. But strengthening investment and exports should lift growth from below 2% this year to around 2.4% in 2006 and 2.7% in 2007.
The government deficit exceeded 3% of GDP in 2004. If fiscal developments prove to be disappointing relative to the 2005 budget projections, beyond what can be explained by weaker than expected growth, then the government will need to take further measures to achieve a decisive reduction in the deficit.With inflation having surprised on the upside and the prospect of a gradual return towards trend growth early next year, there is currently no compelling case for a further cut in interest rates. To raise potential growth a priority is to roll out the reform of the disability scheme nationally, while taking measures over the longer term to improve workforce skills.
Population (000s), 200459 778
Area (000 sq km)245
CurrencyPound
GDP (Billion USD), 20042 124.5
Life expectancy at birth (Women, Men), 2003 80.7, 76.2
Total labour force (000s), 200429 369
Government typeConstitutional Monarchy
Indicators% change unless otherwise indicated
200520062007
GDP growth1.72.42.7
Household savings ratio5.15.66.0
Consumer price index2.12.11.6
Short-term interest rate (%)4.74.54.5
Unemployment rate (%)4.85.15.6
General government financial balance (% GDP)-3.1-3.0-3.2
Current account balance (% GDP)-1.8-2.3-2.7
Source: OECD© OECD Observer, No. 252/253, November 2005


Economic data

GDP growth: -1.8% Q1 2020/Q4 2019
Consumer price inflation: 0.9% Apr 2020 annual
Trade (G20): -4.3% exp, -3.9% imp, Q1 2020/Q4 2019
Unemployment: 8.4% Apr 2020
Last update: 9 July 2020

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