Components of GDP

Question 1

How has economic growth been recently for the UK

Answer 1

Brink of recession the last few years, lower than 2.5% trend growth since 2008 financial crisis. New trend rate is 1%?

Question 2

2024 Annual growth, Forecast growth for 2025 and March 2025 Output Gap

Answer 2

2024: 0.9% (ONS) Office for National Statistics
2025: 0.75% cut from 1.5% (BOE)
-0.5% Budget Gap (OBR) Office for Budget Responsiblity

Question 3

What % of GDP is investment for UK and China

Answer 3

17.5% of GDP, lowest of G7 in 24 out of 30 last years. In contrast, China around 40%

Question 4

Output per worker of USA vs UK (date and percentage)

Answer 4

49% higher in 2021 (OECD)

Question 5

Net migration from EU to UK before vs after Brexit.

Answer 5

Peaked at 280k before Brexit in 2016.
In June 2024, 90k left the UK to EU

Question 6

Reasons for labour shortages, and example of particularly heavy hit industry

Answer 6

Brexit decreasing labour force and increasing economic inactivity + truck drivers particularly hit which damages supply chains

Question 7

Reasons for decreasing growth in the UK.

Answer 7

Low investment and productivity, and falling labour force

Question 8

Inactivity rates and UK labour force

Answer 8

Both lower since before Pandemic

Question 9

Breakdown of AD in 2024

Answer 9

C = 60, G = 24.7, I = 17.5, X-M = -2.2

Question 10

Factors propping up UK AD

Answer 10

Low saving ratio of 10.1%
Falling interest rates
Budget Deficit