UK GDP expected to grow at 1.7% this year and 1.9% in 2018

Key points

• GDP is forecast to grow by 1.7 per cent this year and by 1.9 per cent next year.
• Annual consumer price index inflation peaks at 3.0 per cent in the last quarter of this year before easing back to the target rate of 2 per cent in the final quarter of 2019.
• We have brought forward the timing of the rate hike from the second quarter of 2019 to the first quarter of next year.
• In our forecast, the fiscal deficit is eliminated in 2022 and the debt-to-GDP ratio peaks in 2018/19.