Despite predictions last summer that the UK economy would dip sharply after the Brexit vote, indicators show its pre-referendum upward curve has continued with an annual GDP growth rate of 2% in the last quarter of 2016 with unemployment at just 4.8%.
UK gross domestic product (GDP) was estimated to have increased by 0.7% in October to December 2016 compared with growth of 0.6% in July to September 2016. GDP was 2.0% higher in October to December 2016 compared with the same quarter a year ago. Services increased by 0.8% in Quarter 4 (Oct to Dec) 2016 compared with Quarter 3 (July to Sept) 2016, with all of the four main components of the services industries increasing over this period. The services sector accounts for nearly 79% of total economic activity and has been driving the economic recovery since 2009. The unemployment rate was 4.8%, down from 5.1% for a year earlier. It has not been lower since July to September 2005.
