UK Economy Stats (government Finances,trade And Interest Rates)

Question 1

UK current account deficit

Answer 1

-running a current account deficit of 2.6 percent of GDP, last decade has been 4 percent which isn’t surprising as AD has been low as well as growth

Question 2

Productivity and investment has been…

Answer 2

Poor

Question 3

Minimum wage

Answer 3

-£12.21 and hour

Question 4

Exchange rate quality and conversion rate to dollars and euros

Answer 4

-exchange rate has been weak
£1 to $1.32
£1 to €1.17

Question 5

Government finances are….. and why

Answer 5

Government finances are in a bad shape due to the aftermath of Covid

Question 6

Budget deficit

Answer 6

4.8percent of GDP

Question 7

National debt

Answer 7

95.5 percent of GDP

Question 8

Government finances are

Answer 8

Unstable, possible risk of bankruptcy

Question 9

Bond yields and stat

Answer 9

-Reflect the cost of government borrowing
-4.67 percent

Question 10

Income tax bands

Answer 10

-0-£12,570, 0 percent
-12,571 to 50,270 is 20 percent
-50,271 to 125,140 is 40 percent
-over £125,140 is 45 percent

Question 11

National insurance rate for employees

Answer 11

-12percent then dropped to 10 and then to 8 percent
-employment is rising

Question 12

Corporate tax

Answer 12

25 percent

Question 13

VAT

Answer 13

20 percent

Question 14

Gini coefficient

Answer 14

0.357

Question 15

Bank of England interest rate

Answer 15

-4.5 percent
-was as low as 0.1 percent during December of 2021
-they’ve been raised to tame out of control higher than target inflation

Question 16

Most important macro objective

Answer 16

-inflation is no longer viewed as the most important macro objective
-rather boosting growth and lowering unemployment seen as more employment

Question 17

Average lending rate

Answer 17

4.75 percent

Question 18

Bank willingness to lend

Answer 18

Bank willingness to lend is good

Question 19

Consumer and business confidence is both….

Answer 19

Weak

Question 20

Saving ratio definition and stat

Answer 20

-the proportion of disposable income that is saved and not spent
-prior to Covid it was usually around 4-5 percent
-currently 12 percent due to interest rates being high, cost of living crisis aswell as consumer confidence being weak

Question 21

Quantative easing and stat

Answer 21

-895 billion pounds
-it’s the total amount of money the bank have pumped into the UK economy since the invention of the policy
-450 billion was pumped during Covid which is why we have seen so much inflation after Covid