The UK economy grows faster than expected, and in Q4 2017 the GDP grew by 0.5% after the 0.4% growth in the three months to September. Compared to the same quarter of 2016, the UK economy grows by 1.5%. The economic growth, however, generally slows down in 2017, taking into account even the weakest pace of recovery in the economy in five years, as consumers and businesses have felt the consequences of the Brexit vote.
For comparison, the GDP growth in 2017 reached 1.8%, down from 1.9% in 2016. The growth is even expected to slow down this year to 1.4% due to inflationary pressures and postponing investment of the companies until the situation around Brexit has been clarified.
Despite the slight rise in the last quarter, the larger picture shows slower and uneven growth in the economy. The GDP growth in the last three months of 2017 is mainly due to a better performance of service and production sectors, while construction in the UK shrank for the third consecutive quarter.
Last week, it became clear that the number of people working in the UK grew unexpectedly between September and November while wages in the country grew at the fastest pace in nearly one year.
The market analysts will track the statement of the Bank of England President, Mark Carney, later in the day. The regulator raised interest rates in November for the first time in a decade, as bankers believe a sharp fall in unemployment will soon begin to raise wages.