Great Britain: No bust, no boom

Great Britain, despite its economic stimulus policy, did not escape a cyclical weakening in 2001. The downturn, however, was less pronounced than in many continental European countries. Growth in GDP at 2½% was above the EU average. Compared to 2000, employment increased by ½% and unemployment decreased to 5%. Inflation stood at 1.2 %. In 2002 real GDP will increase by around 1¾%. On the labour market the situation will deteriorate far into the current year. The average unemployment rate for the year could increase to 5¼%. Consumer prices will increase by 1¼%. In 2003 the economy will perform steadily. Real GDP will grow by 2½% and correspond to the Western European mean. The unemployment rate will remain at 5¼%, and prices will exceed the 2002 level by around 1¾%.