Slowing growth, but still the UK is strongest of the G7 economies this year
Latest data shows the growth of the UK economy slowed to 0.7% in Quarter 3, down from 0.9% in Quarter 2. Future growth is also expected to be more restrained over the coming quarters, due to the headwinds caused by poor economic performance in the Eurozone, and market expectations of potential Bank of England interest rate rises in 2015. However, the UK is still expected to post an annual growth rate of 3.2% for 2014, which is strongest of all G7 economies and well above the 2nd placed US at 2.2%. Of some concern, the German economy (which has for years propped up the overall Eurozone) is slowing significantly, with their Government slashing growth forecasts for 2015 from 2% down to 1.2%.