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UK economy approaching full capacity, says Hammond

Published 24/10/2017, 12:00
© Reuters. Britain's Finance Minister Philip Hammond leaves 10 Downing Street, London

LONDON (Reuters) - Britain's economy is approaching full capacity, chancellor Philip Hammond said on Tuesday ahead of his Nov. 22 budget announcement when asked about using public money to finance homebuilding.

© Reuters. Britain's Finance Minister Philip Hammond leaves 10 Downing Street, London

"Increasing activity in the construction sector is a very good way of creating jobs but ... at 4.3 percent, our economy is approaching full employment, the output gap is extremely small," Hammond said in response to a question in parliament about increasing borrowing to fund more housing.

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