Overview and outlook
Growth should improve to 3% in FY16/17, before it accelerates to 4% and 5% in FY17/18 and FY18/19.
The floating of the pound alleviated foreign currency shortages, but GDP growth recovery has been gradual.
Fiscal deficit to narrow to 11% of GDP in FY16/17 and to 8-9% in FY17/18 and FY18/19 as fiscal reform stays the course.
Double-digit inflation should ease in late 2017, and further in 2018, as monetary policy tightens, stabilizing the pound.