During the second quarter of 2022, UK GDP decelerated from the previous quarter to a year-on-year growth rate of 4.38%. Inflation increased to a year-on-year growth rate of 9.17%. The labour market continued to recover from the economic effects of the Covid-19 pandemic, resulting in a decline in the unemployment rate to 3.60%. The year-on-year change in job creation declined to 1.04%. In addition, the pound sterling depreciated against the dollar to an average exchange rate of 1.26 $/£.
Macroeconomic outlook report: UK 2Q22
Macroeconomic overview
- During the second quarter of 2022, UK GDP growth declined by 5.48 p.p. from the previous quarter to a year-on-year rate of change of 4.38%.
- Regarding the labour market, the unemployment rate decreased by 0.20 p.p. compared to 1Q22, to 3.60%. Meanwhile, employment in the UK registered a year-on-year growth rate of 1.04%, after deceleration of 0.17 p.p. compared to the previous quarter.
- During the second quarter, the pound sterling depreciated by $0.09 per pound compared to the previous quarter, to an exchange rate of 1.26 $/£.
- Finally, inflation accelerated from previous quarters to a rate of 9.17%, further exceeding the Bank of England's 2% target, reflecting problems in global supply chains and high energy prices.
For more information, access the Macroeconomic Outlook Report of UK 2Q22.