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At a Glance …

The UK economy

Published online by Cambridge University Press:  26 March 2020

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Abstract

  • The government's new plans for departmental spending are affordable, but the fiscal loosening does pose a threat to the outlook for inflation and interest rates.

  • Growth will pick up next year as export performance improves because of greater buoyancy in world trade and the fall in the exchange rate.

  • In order for inflation to stay on target in 200I, interest rates will have to rise by half a percentage point by the start of next year.

  • The upward pressure on interest rates will be limited by a decline in the growth of private sector spending as households increase their saving rate and non-manufacturing business investment increases less rapidly.

  • Inflationary pressures should also be restrained by a recovery in productivity growth.

Type
Articles
Information
National Institute Economic Review , Volume 173 , July 2000 , pp. 2
Copyright
Copyright © 2000 National Institute of Economic and Social Research

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