econo-my.com UK economic forecasts for 2006

 
Below we've put our forecasts for the UK economy for 2007 and some of our reasons for them. If you want to comment on what we've come up with please contribute to the debate section. 
 
% changes year on year  

2006 forecast

2006 actual

2007 forecast

 

Our predictions for 2006 were fairly close. We underestimated growth, inflation, the stock market and interest rates, so at least these are all consistent with each other. We see little change for 2007. Expect houseprices to start to come under severe pressure as further interest rate changes kick in.
   

         
GDP  

2.3

2.7

2.8
         
Manufacturing Output

0.7

0.6

0.5
         
FTSE 100

5700

5950

6450
         
Average Earnings

4.1

4.1

4.3
Inflation

2.3

2.6

2.5
Base Rate year end

4.50

5.00

5.75
         

Unemployment

 

0.95m

0.95m

1.03m