The latest data from the Office for National Statistics estimates that in 2014, the UK economy grew 2.8% across the year, up 0.2% from previous estimates. In Q3 and Q4 of 2014 the economy expanded by 0.6%.
Growing at a faster pace than previously estimated, has been boosted by strong export performance. There had been concerns that the weakening of the Euro, could harm exports as the Eurozone is the UK’s major trading partner.
In the FX markets EURGBP traded lower to session lows of 0.7266, with GBPUSD not following suit with Sterling weakening.
Could the economy be the UK election winner?
1992 Bill Clintons Presidential campaigned on the phrase “The economy, stupid”. The positive data from the UK could be caveat for a Conservative led coalition to win the general election if voters decide at the ballot box, to back the “Long Term Economic Plan”. With inflation at an all-time record low of zero, with marginal wage increases and economic growth, voters should feel that the worst is behind them.
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