A Goldilocks economy is a term coined by the economist David Shulman to define an economy with good job growth and a steady GDP. Now we are seeing the re-emergence of the term to describe the U.K’s economy.

Unemployment is at its lowest in 45 years, with wages also growing at their fastest rates in the last ten years. In some cases, pay is outpacing the cost of living, which is brilliant news for some employees!

In terms of GDP, the British economy has expanded by 0.2% in the last three months and holistically during 2018 expenditure statistics suggested a steady 1.4%. Since the Brexit referendum, the Bank of England has observed a slowdown of business and foreign investment with companies like Dyson, and EasyJet, moving their headquarters overseas. They have additionally measured a decrease of trade with our most significant trading partners, predominantly China and the EU.

The government’s official inflation target is 2% and prices have been rising to 1.9% throughout February, therefore there is a good reason to be pleased with inflation rates in the U.K currently. The rises are steady and sustainable, and not destabilising.

The last time the US economy was widely deemed to be in a Goldilocks state, the financial crisis swiftly followed.

So with unemployment rates shooting down rapidly, inflation at a standstill, and GDP slowing down, we can see that the Goldilocks concept has become a reality for the UK, and only time will tell what repercussions it will have.