MAcro Application

Question 1

Annual Growth rate (2023)

Answer 1

0.1%

Question 2

Quarterly Growth Rate (Q4 2023)

Answer 2

-0.3%

Question 3

Growth Rate Forecast 2024/25 (IMF)

Answer 3

2024 - 0.5% and 2025 - 1.5%

Question 4

Negative Output gap

Answer 4

0.1%

Question 5

GDP/capita

Answer 5

£36,000

Question 6

Total GDP

Answer 6

£2.53 Trillion
Services 79%
Manufacturing 14%
Construction 6%
Agriculture around 1%

Question 7

Unemployment Rate (ONS) Labour force sample surveys & claimant count

Answer 7

4.2%

Question 8

Employment Rate LFS

Answer 8

74.5 %

Question 9

Economic inactivity rate

Answer 9

22.2 % Long term sick & early retirees

Question 10

Wage Growth

Answer 10

5.7 % Real wages falling but still positive growth when CPIH accounted for

Question 11

Job vacancies

Answer 11

Falling (loose labour market)

Question 12

Youth unemployment

Answer 12

11%

Question 13

Consumer confidence

Answer 13

Very weak

Question 14

Inflation Rate CPI vs CPIH

Answer 14

CPI = 3.2%
CPIH = 3.8% (housing costs included)

Question 15

Core inflation rate

Answer 15

4.2%

Question 16

Inflation expectations

Answer 16

IMF - 2.5% for the remainder of 2024

Question 17

Wage growth vs Real wage growth

Answer 17

5.7% vs CPI 3.2%

Question 18

CA deficit

Answer 18

3.2% of GDP

Question 19

Productivity and I

Answer 19

Very poor

Question 20

MIn wage

Answer 20

11.44 / hour

Question 21

ER (weak £)

Answer 21

£1=$1.24 £1=€1.16

Question 22

US and euro trade

Answer 22

US = strong Euro = weak

Question 23

Budget Deficit

Answer 23

4.2% of GDP (2023/2024)

Question 24

National Debt

Answer 24

Around 100% of GDP, Risen over past 5 years

Question 25

Bond Yields

Answer 25

4.2%

Question 26

Income Tax bands ap

Answer 26

Frozen until 2029 - TR 45 bn per year

Question 27

National Insurance

Answer 27

12% to 10% to 8%

Question 28

Corp Tax

Answer 28

25%

Question 29

Vat

Answer 29

20%

Question 30

Gini Coefficient

Answer 30

0.357 - 0.4< leads to social uproar eg Brazil&colombia

Question 31

BofE base rate

Answer 31

5.25%

Question 32

Average lending rate

Answer 32

6.25%

Question 33

Banks willingness to lend

Answer 33

Good

Question 34

Consumer confidence

Answer 34

Very weak

Question 35

Business confidence

Answer 35

Poor but potential signs of positives

Question 36

Savings ratio

Answer 36

10.5%

Question 37

QE

Answer 37

895 billion