United Kingdom

Housing market risk

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Recent signs that growth is slowing from above-trend rates are welcome as the economy is probably operating close to capacity.
Future growth is likely to be less reliant on consumption and more driven by investment, with net exports being much less of a drag. Instability stemming from the housing market remains a risk, although it may be smaller than at previous house price peaks. The slowdown and continuing low inflation warrant a pause in monetary tightening, although further tightening may be needed during 2005, in particular due to increasing pressures from the labour market. The government deficit is likely to be above 3% of GDP in 2004 and, in the absence of a spontaneous rise in taxes, additional action may be required to achieve a decisive and sustainable reduction.
Population (000s), 200360 483
Area (000 sq km)245
GDP (Billion USD), 20031 795.0
Life expectancy at birth (Women, Men), 2001 80.4, 75.7
Total labour force (000s), 200330 178
Government typeConstitutional Monarchy
Indicators% change unless otherwise indicated
GDP growth3.22.62.4
Household savings ratio6.47.47.9
Consumer price index1.31.72.1
Short-term interest rate (%)
Unemployment rate (%)
General government financial balance (% GDP)-3.2-3.2-3.3
Current account balance (% GDP)-2.2-2.4-2.2
Source: OECD© OECD Observer No 245, November 2004

Economic data

GDP growth: -9.8% Q2/Q1 2020 2020
Consumer price inflation: 1.3% Sep 2020 annual
Trade (G20): -17.7% exp, -16.7% imp, Q2/Q1 2020
Unemployment: 7.3% Sep 2020
Last update: 10 Nov 2020

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