Oxford Economic Country Briefings, May 29th, 2007
Highlights and Key Issues
* Economic growth did not change gear at the start of 2007, with Q1 GDP again expanding 0.6% on the quarter and 2.8% on the year. Growth was driven by booming business investment and renewed buoyancy in exports. Meanwhile, private consumption growth bounced back and climbed by 0.5% on the quarter, having fallen by 0.1% in Q4.
* Inflationary pressures are likely to emerge as a result of rising labour costs. Higher input costs will begin to erode corporate profitability, putting pressure on firms to raise output prices. There has so far been little sign of a pick-up i...
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