Statistics

Question 1

What is the Annual Growth Rate?

Answer 1

1.1% - 2024

Extra info: very low, stagnating UK economy

Question 2

What is the Quarterly Growth rate?

Answer 2

2024: 0% - Q3. 0.1% - Q4

Extra Info: Barely avoided recession

Question 3

What is the Annual Growth forecast?

Answer 3

1% OBR. 0.75% BoE (2025)

Extra info: Very low economic growth
AD - high IR, High tax, low confidence, low gov spending, trumps tariffs
SRAS - higher prices of necessities
LRAS - Productivity at its lowest after Brexit therefore investment is low.
Potential growth prior to 2008: 2.5%
Potential growth from 2008 - COVID: 1.5%
Now - 1%

Question 4

What is the current output gap?

Answer 4

-0.6%

Question 5

GDP per capita?

Answer 5

£36,000

Question 6

Total GDP in the UK economy?

Answer 6

£2.851 trillion

Breakdown:
Services - 79%
Manufacturing - 14%
Construction - 6%
Agriculture - 1%

UK is a service based economy, specifically the Financial sector (12%)

Question 7

Limitations to unemployment figure?

Answer 7

Data for 2025 has been extrapulated due to lack of participants in the labour force survey

Question 8

Unemployment rate?

Answer 8

4.5%

Extra info: Cyclical as it is above the NRU (3.5-3.8%)

Question 9

Employment rate?

Answer 9

75.1%

Extra info: Target rate of employment is 80%

Question 10

Economic inactivity?

Answer 10

21.4%

Extra info: Due to rise in illness, mental health issues etc

Question 11

Wage growth?

Answer 11

5.6%

Extra info

Question 12

Job vacancies?

Answer 12

Low due too loose labour markets

Question 13

Youth unemployment?

Answer 13

13.3% and rising

Extra info: due to lack of experience

Question 14

Consumer and business confidence?

Answer 14

Very weak due to cost of living crisis and trumps tariffs

Question 15

Current inflation rate?

Answer 15

2.6%

Extra info: disinflationary pressure
October 2022 - 11.1%

Question 16

Core inflation rate?

Answer 16

3.4%
Definition: Inflation without volatile goods (utilities) in the basket of goods

Question 17

Produce price inflation?

Answer 17

0.3%
Definition: change in price of goods when manufactured

Question 18

Inflation expectations?

Answer 18

3.9%

Extra info: expectations drive wages

Question 19

Current account deficit?

Answer 19

2.6% of GDP

Extra info: last decade averages around 4% of GDP

Question 20

Productivity and investment?

Answer 20

Very poor

Extra info: makes us uncompetitive

Question 21

Minimum wage?

Answer 21

£12.21/ hour —> for those 21 and over (1/4/25)
£10.00/ hour —> for those 18-20
£7.55/ hour —> apprentices and 16-18

Extra info:
One of the highest in the world
1/4/24 used to be £11.44
For those 18-20, increased by 16.3% from £8.60
For those 16-18 and apprentices, rose from £6.40

Question 22

Exchange rate?

Answer 22

£1 = €1.16
£1 = $1.32
Weak

Question 23

Trade with US and EuroArea?

Answer 23

Slow
Stagnant

Question 24

Budget deficit?

Answer 24

5.3% of GDP
£137 bn

Question 25

National debt?

Answer 25

96% GDP

Question 26

Bond Yield?

Answer 26

4.67%

Question 27

Income tax bands?

Answer 27

0% = 0 £12,750 20% = £12,750 - £50,270 40%= £50,270 - £125,140 45% = £125,140 + Frozen till April 2018 —> Fiscal Drag forecasted to earn extra £45 bn per year by 2028

Question 28

National Insurance?

Answer 28

Employees: 12% —> 10% —> 8% (aim to reduce economic activity Employers: increase (to bring more gov revenue)

Question 29

Corporation tax?

Answer 29

25%

Question 30

VAT?

Answer 30

20%

Question 31

Gini Coefficient?

Answer 31

0.357

Question 32

BoE base/ IR

Answer 32

4.25% December 2021 - 0.1% August 2023 - 5.25%

Question 33

Average lending rate?

Answer 33

4.75%

Question 34

Saving ratio?

Answer 34

12%

Question 35

Quantitative Easing?

Answer 35

£895 bn