macro stats 2024

Question 1

growth

Answer 1

0.1% (2023)
- poor growth

demand side:
- high interest rates
- low confidence

supply side:
SR; rising gas prices
LR; low productivity

Question 2

Unemployment

Answer 2

• unemployment rate: 4.2% (rising) - cyclical unemployment
• economic inactivity 22.2% (very concerning)

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Question 3

Inflation

Answer 3

inflation 3.2% (disinflation)

Question 4

trade

Answer 4

• UK in a current account deficit (3.2% GDP)
• weak exchange rate (pound is now worth less than before when expressed in other currencies)
• weak pound causes supply side problems (making imports more expensive)

Question 5

gov finances

Answer 5

• budget deficit (4.2% GDP) (gov spending greater than tax revenue in a year)

Question 6

interest rates

Answer 6

bank of england base rate - 5.25%