Tag: UK

Figures from the Office for National Statistics (ONS) show that around 8 million Britons are working part-time, a record high over the last two decades. The growth in part-time employment has helped to reduce the total unemployment figure which has now fallen to its lowest level for a year.

At the end of 2014, we looked towards the year ahead and the risks which could have an impact on UK economic growth. Now that we are over half way through 2015, we thought it was a good time to revisit and update our thoughts. UK political uncertainty has gone, however the other highlighted risks noted remain largely the same.

UK Growth - headwind

In 2014, the UK economy grew 3%. Forecasted growth rates for 2015 and 2016 have faced cuts following a slowdown at the start of the year. Official figures indicated the UK’s growth rate halved in the opening months of 2015. In July, The OBR revised its 2015 GDP forecast downwards to 2.4% from the previous forecast of 2.5%. Other forecasters have made similar cuts. This year’s rate of growth is likely to be lower than 2014 but still a respectable 2.3-2.5%.

Here we revisit some of the domestic and global risks which could have a knock on impact on the UK growth outlook for the remainder of 2015.