2018.01.1007:54:00UTC+00UK GDP Expands 0.6% In Q4: NIESR

The UK economy expanded at a faster pace in the fourth quarter, the National Institute for Economic and Social Research said Wednesday.

The think tank said monthly estimates of GDP indicated that output grew 0.6 percent in the fourth quarter compared to 0.4 percent expansion posted in the third quarter.

Based on this estimate, the economy grew 1.8 percent in 2017, the NIESR said.

The recovery has been driven by both the manufacturing and the service sectors, supported by the weaker pound and a buoyant global economy, while construction output continues to lag, Amit Kara, Head of UK Macroeconomic Forecasting at NIESR, said.

Kara said the Bank of England is expected to raise the policy rate once again by 25 basis points in May and then every 6 months until Bank Rate reaches 2 percent by mid-2021.