The UK economy [March 2003]

Kenneth Low

Research output: Contribution to journalArticle

Abstract

The world economy has weakened slightly towards the end of 2002. In particular geopolitical tensions and concerns over equity markets have dominated the economic picture. The UK has performed relatively well and is expected to recover in 2003 and firmly in 2004, following recovery in the US. Inflationary pressures have been subdued and interest rates are very low. The labour market has per- formed relatively better than expected and is forecast to continue to do so therefore unemployment will remain low. There are no significant macroeconomic risks despite some concerns over the current account, which are minor and increased government borrowing. UK real GDP growth is forecast to be 2.2 per cent in 2003 and 2.4 per cent in 2004. Consumption and government spending are expected to boost domestic demand while investment is forecast to pick up. There are no significant inflationary pressures other than temporary pressure from oil prices that should be resolved soon and considerable house price inflation, although this is expected to slow slightly over the next two years. Unemployment is forecast to remain at low levels with steady employment growth. Despite the economy being weaker towards the end of
2002 and at the start of 2003 there are important signs that indicate recovery is taking place and therefore the outlook for the UK is still relatively promising.
LanguageEnglish
Pages11-14
Number of pages4
JournalQuarterly Economic Commentary
Volume28
Issue number1
Publication statusPublished - Mar 2003

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Unemployment
Equity markets
Economics
GDP growth
Labour market
World economy
Oil prices
Interest rates
House prices
Macroeconomics
Current account
Government
Borrowing
Employment growth
Domestic demand
Government spending
Inflation
Real GDP

Keywords

  • UK economic output
  • UK economic performance
  • economic trends

Cite this

Low, Kenneth. / The UK economy [March 2003]. In: Quarterly Economic Commentary. 2003 ; Vol. 28, No. 1. pp. 11-14.
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Low, K 2003, 'The UK economy [March 2003]' Quarterly Economic Commentary, vol. 28, no. 1, pp. 11-14.

The UK economy [March 2003]. / Low, Kenneth.

In: Quarterly Economic Commentary, Vol. 28, No. 1, 03.2003, p. 11-14.

Research output: Contribution to journalArticle

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