UK Gross Domestic Product (GDP) – Q4 2017 on Thursday, March 29th, 2018 at 8:30 GMT.

This month, the British Chambers of Commerce signalled that the UK will remain at the bottom of the G7 group of advanced nations, at least until the end of the decade.

This is one of the more pessimistic views on the British economy since the Brexit vote.

The current forecast still points to expansion, with last year’s fourth quarter GDP at 1.5% year-on-year (yoy) – lower than the 1.7% recorded in Q3 2017.

With only a year to go before Britain leaves the European Union, will the British economy continue on its current downward trajectory?

Market experts are divided in 2 groups:

• Bullish factors for the GBP
  1. A favourable Brexit outcome can boost the economy.
  2. UK earnings have grown at their fastest rate in more than 2 years.
  3. Inflation is falling fast.
• Bearish factors for the GBP
  1. The UK’s performance in 2017 contrasts with strengthening growth elsewhere.
  2. Last month’s data on GDP growth were revised down to 0.4% q/q in Q4 2017.

What do you think? Will the GBPUSD fall or rise?

How the GDP affect GBP?

The Gross Domestic Product released by the Office for National Statistics is a measure of the total value of all goods and services produced by the UK.

GDP is considered a broad measure of the UK’s economic activity.

A higher-than-expected reading should be taken as positive/bullish for the GBP, while a lower-than-expected reading should be taken as negative/bearish for the GBP.