UK Economy 2011

The UK economy is emerging slowly from recession, but growth is moderate and unemployment is high. In addition, the UK is facing inflation above the government’s target of 2%. Also, the government have taken several steps to reduce the burden of government borrowing; these spending cuts and tax rises are likely to keep the economic recovery at a modest pace.

Economic Growth


GDP (QoQ)10Q30.8 %
Service sector output3m to Sep2.1 %
Industrial production3m to Oct3.8 %
Manufacturing output3m to Oct5.6%
Households’ consumption10Q31.7%
Retail sales volumesOct-0.1%
Whole economy investment10Q32.8%
Goods exports (volumes)3m to Oct12.0
Goods imports (volumes)3m to Oct11.6
Current account balance, £bn10Q2-7.4
Business Investment (Provisional)10Q2


Labour market & earnings
Unemployment, mn3m to Oct2.50
Unemployment rate, %3m to Oct7.9
Claimant unemployment, mnNov1.47
Claimant rate, %Nov4.5
LFS total in employment, mn3m to Oct29.1
LFS employment rate, %3m to Oct70.6
Workforce jobs, mnSep30.7
Headline average earnings %43m to Oct2.3



Inflation & prices
Producer output prices (nsa)Nov3.9
Producer input prices (nsa)Nov9.0
Halifax house pricesNov-0.7
Nationwide house pricesNov0.4

Government Borrowing

  • More on UK Public Sector Debt
  • UK Debt increased rapidly after 2007 because of the recession, falling tax receipts and financial bailout for banks.
  • The government have taken several steps to try and reduce the level of government borrowing such as tax increases and spending cuts. However, the stabilisation of public sector debt to GDP depends on continued economic growth.
  • Gross Public Sector Debt includes temporary financial sector intervention
  • Public Sector debt excludes financial sector intervention.



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