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Economy and Banking Sector of the United Kingdom

National Currency

Pound Sterling (GBP)

Exchange Rate

1 EUR = 0.8415 GBP (2020-02-26)

During the last 11 years EURGBP exchange rate was within the range 0.70410 - 0.91973, reaching its maximum in Aug 2017 and falling to its minimum in Jul 2015.

Euro to Pound sterling (EURGBP).

Chart 1. Euro to Pound sterling (EURGBP). Source: ECB.

GDP

Nominal GDP (2018)
2,393.7 bln EUR  (+0.03%)
Nominal GDP per Capita (2018)
36,000 EUR  (+0.02%)
Real GDP Growth (2018)
1.4 %  (2017: 1.7 %)

According to Eurostat, nominal GDP of United Kingdom in 2018 was 2,393.7 bln EUR.

United Kingdom underperforms the European Union in terms of real GDP growth with the average annual differential coming to -0.2% over the past 10 years (2008 - 2018). In 2018 real GDP growth was 1.4% which was below the Euro Area average (1.9%) and below the European Union average (2.0%). Real GDP growth in 2019 - 2024 are IMF's estimates.

Real GDP Growth in United Kingdom.

Chart 2. Real GDP Growth in United Kingdom. Source: Eurostat, International Monetary Fund.

In 2018, nominal GDP per capita in United Kingdom was 36,000 EUR.

United Kingdom has an above-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, exceeded that of the European Union by 4.8% over the past 10 years (2007 - 2017). GDP per capita at PPP in 2018 - 2024 are IMF's estimates.

GDP Per Capita at Purchasing Power Parity in  United Kingdom; European Union = 100.

Chart 3. GDP Per Capita at Purchasing Power Parity in United Kingdom; European Union = 100.

Inflation Rate

CPI, MoM (Feb 2019)
0.5 %  (Jan 2019: -0.8 %)
CPI, YoY (Feb 2019)
1.9 %  (Jan 2019: 1.8 %)
CPI, Year Average (2018)
2.5 %  (2017: 2.7 %)

According to Eurostat, inflation rate in United Kingdom in 2018 expressed as annual percentages of average consumer prices was 2.5% which was above the Euro Area average (1.8%) and above the European Union average (1.9%). Inflation rates in 2019 - 2024 are IMF's estimates.

Inflation Rate in United Kingdom.

Chart 4. Inflation Rate in United Kingdom. Source: Eurostat, International Monetary Fund.

Unemployment Rate

Unemployment Rate (2018)
4.0 %  (2017: 4.4 %)

According to Eurostat, unemployment rate in United Kingdom in 2018 was 4.0% which was below the Euro Area average (8.2%) and below the European Union average (6.8%). Unemployment rates in 2019 - 2024 are IMF's estimates.

Unemployment Rate in United Kingdom.

Chart 5. Unemployment Rate in United Kingdom. Source: Eurostat, International Monetary Fund.

Government Bond Yield

Government Bond Yield (Mar 2019)
1.14 %  (Feb 2019: 1.20 %)

According to Eurostat, government bond yield in United Kingdom in March 2019 was 1.14%, compared to 1.20% in February 2019.

Government bond yield of United Kingdom.

Chart 6. Government bond yield of United Kingdom. Source: Eurostat.

Credit Ratings (as of May 2018)

Fitch
AA (very high credit quality), outlook negative
Moody's
Aa2 (high grade), outlook stable

The United Kingdom has sovereign credit ratings assigned by Fitch and Moody's: the rating set by Fitch is AA (very high credit quality), outlook negative; the rating set by Moody's is Aa2 (high grade), outlook stable.