Key Economic Data And Statistics

Question 1

The U.K in an economic context:

• Interest rates
• Fiscal Policy
• Growth
• Debt
• Unemployment rate
• Exchange rate

Answer 1

Interest rates - 0.1%, 0.75% prior to Covid, suffering from the liquidity trap.

Fiscal policy - 2021 march budget announce a fiscal drag, constant rate of tax which does not adjust with inflation. Increased cooperation tax from 19% to 25%, tightening
Still largely spending, had to borrow 19.1 billion in February 2021

Growth - contracted 2.9% in 2020 overall

Debt - Government debt is currently at 97.5% of GDP was at 85.4% prior to Covid, 94% of the debt is from the Bank of England however.

Unemployment rate - 3.5% prior to Covid, 6.5% in 2021, adding 2.2million more

Exchange rate - Depreciated from 1 pound = $1.50 to 1 pound = $1.22 due to Brexit, however when Boris Johnson won his conservative majority it rose to 1 pound = $1.35

Question 2

China In an Economic Context

Answer 2

Exchange rates - Fixed: pegged at $1 = 8.28 yuan
Growth - $15.42 Trillion in 2020
Debt - Foreign currency reserves of estimated $4 trillion, 65.1% of GDP
Interest rates - 3.85%
Unemployment rate - 3.64%