The United Kingdom’s economy has been on the strong recovery path, with the EPI projected to be at 92.4%, or a B level, in 2016. The economy is improving, with the unemployment rate dropping close to 5%, despite the continued fiscal austerity of the government.

The United Kingdom is one of the few European countries that managed to recover from the financial crisis. The policy of monetary easing and fiscal stimulus provided strong support to the economy in 2009-2010. A reversal towards more fiscal discipline in the past few years and potential rate hikes in 2016 have been signs of economic stability.

GDP growth is projected to slow down to 2.2% in 2016, lower than 2.5% and 3% in 2015 and 2014respectively, driven by fiscal austerity and of the government but still remaining above the European average. Inflation remains low due to low oil prices but could start increasing in 2016, due to base effects of the past year. Unemployment has decreased to 5.6% in 2015 from 8.1% in 2011 and is on a declining path. The government has decided to unwind the fiscal stimulus package and the budget deficit has been gradually declining from 10.8% in 2009 to less than 3% in 2016.