NIESR: UK economy grew by 2% last year
The British economy grew by 2% over the last year, compared with 2.2% seen in 2015, according to a report published by the National Institute of Economic and Social Research (NIESR) on Wednesday.
Monthly estimates of gross domestic product growth show that output increased 0.5% in the last quarter of 2016, compared to growth of 0.5% in the three months ending in November last year.
The 2% growth last year was "in line with the long run potential growth rate of the UK economy," James Warren, research fellow at NIESR, said. He added that "the composition of economic growth in 2016 has been unbalanced, robust consumer spending has compensated for the weakness in other sectors." Warren also said that consumers face significant headwinds this year and next, especially due to the increase in consumer price inflation following the depreciation of sterling in 2016.