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The UK economy [April 2007]

Low, Kenneth (2007) The UK economy [April 2007]. Quarterly Economic Commentary, 31 (3). pp. 17-19. ISSN 0306-7866

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The global economy remains relatively strong given the pick-up in growth in 2006 after the slower growth seen in 2005. Higher oil prices pushed inflation up slightly across the globe but in the second half of 2006 oil prices fell significantly especially in September. The US in particular slowed slightly in 2006 from previous expectations whereas the Euro Area outperformed expectations. In the UK growth was relatively strong but 2007 may see a slight slowing of growth across the globe as households and businesses feel the impact of higher prices and interest rates. Economic performance in China and India continued at a blistering pace. The outlook for the world economy remains good and all developed economies are forecast to grow at a reasonable pace.