The British economy [September 1991]

This article provides an analysis of the most recent economic data pertaining to the British economy. The most recent data indicate the UK economy is continuing in the trough of the recession and that there is unlikely to be much of an upturn before 1992. In the first quarter of 1991, the average measure of GDP at current market prices - nominal or 'money' GDP - rose by 0.3% during the quarter to a level 3.2% higher than the same period a year earlier. The rate of growth of
money GDP was therefore significantly slower than the 1.4% recorded during the fourth quarter of 1990 and below the average for the preceding three quarters of the year. After allowing for price changes, the average measure of GDP at constant market prices - 'real' GDP - fell by 0.5% in the first quarter compared with reductions of 0.9% and 1.4% in the fourth and third quarters of 1990, respectively, and increases of 0.9% and 0.4%, respectively, during the second and first quarters of the year.