Developments in world activity can spill over to UK gross domestic product (GDP) growth both through trade and non-trade linkages. World GDP growth is therefore a key input into the Monetary Policy Committee’s forecast. Official GDP releases, particularly in sufficient number to construct a global aggregate, only appear with a significant lag. However, there are many sources of economic activity and financial market data that can provide more timely insights into the path of world activity. The Bank focuses on two key measures of global activity: UK export-weighted world GDP, and purchasing power parity-weighted ... (full story)