macro case studies Flashcards
what is the current uk base rate?
0.75% (check if up to date it will change)
what is an example of a very high interest rate?
argentina = around 45% (check)
why is argentina’s interest rates so high?
because their cpi inflation is expected to be almost 50% by the end of 2022 while economic growth is only forecasted to be 2%
what country has the highest savings ration?
Qatar = 58%
what is the UKs savings ratio
the savings ration surged from 5% to 25% during the first lockdown
who has one of the highest national debts?
Japan = 257% of GDP Sudan = 210% of GDP Greece = 207% of GDP
who has one of the highest trade deficits? and surpluses?
the USA had a trade deficit of almost a trillion dollars in 2020 while China had surplus of over $500bn in 2020
who has the highest per capita disposable income?
USA with about $55,000 per capita
who has one of the highest income taxes?
Japan with around 56% income tax
who has one of the highest corperation taxes?
Venezuela with it being around 34%
what was the USs fiscal deficit in 2021
around $2.8 trillion
what was the the UK’s forecasted growth looking like in 2022
the highest out of all the g7 countries
explain the link between the canadian dollar and the price of oil
canada is the worlds 4th largest producer of oil so when oil dropped around 60% from mid 2014 to 2015, so did the canadian dollar
how have oil prices increased since 2020?
they have increase 5x that of the low in 2020
give an example of austerity measures in the UK
the uk government cut £30bn worth of spending towards social services, housing subsidies and welfare payments from 2010 to 2019
what did japan experience in the 90s
they experienced a “lost decade” where there was stagnation and deflation
give an example of hysterisis and explain what is it
hysterisis is where the effect of something keeps happening even after the cause has gone. in 1981, unemployment rose to 3 million people due to the recession, a form of cyclical unemployment. But, unemployment kept on rising all the way until 1986, suggesting that this cyclical unemployment turned into structural unemployment
how has USAs gini coefficient changed over time
their gini coefficient has continued to rise since the 1990s
how much has the UK quantitative eased?
they have bought almost £900bn worth of bonds using QE
what have been the effects of trump’s tariffs?
Trump enforced tariffs which, as of 2020, were on almost 17% of all imported goods to the US. according to forbes, the total stock market return of these tariff announcements was -10%. it also led to a large increase in consumer costs of around $50bn. many countries also imposed retaliatory tariffs including China, who imposed $34bn worth of retaliatory tariffs
how has vietnam’s economic growth been in the 21st century
they have recorded more than 5% growth annually for every year this century until the pandemic
how has vietnams trade balance changed?
they have only started to run a trade surplus since 2010
what is vietnams gini coefficient
it has stayed around the mid 30s since the 90s
how has vietnams unemployment trended?
it has not gone above 3% in this century
what is the levels of fdi in vietnam?
the accumulated stock of FDI is almost $400bn spread over 33,000 projects
who imports the most from vietnam?
the US buys the most of vietnams exports. 51% go to asia and 26% go to north america
what is vietnams largest export?
in 2020, just under half of all vietnams exports were machinery equipment
how does vietnam rank for competitiveness
vietnam is often in the top half of the world in competitiveness
what is their fiscal deficit?
around 4% of GDP in 2022
what is their current account?
5.5% surplus of their GDP
how much did real GDP fall over pandemic
it dropped 9.5% in 2020 but recovered 6.8% in 2021
how many jobs are currently unfilled?
1.2 million vacant jobs
what is the current rate of youth unemployment?
11% - london = 18%
what is the CPI inflation rate early 2022?
in january, it got tto around 6% but IMF expect it to reach around 8%
what was the wage inflation rate end of 2021?
around 4.5%
what was mean disposable income in 2020-21?
around £35,000
what was uk fiscal deficit in 2020?
12.5% of GDP. biggest post war deficit
what was the increase in national debt from 2019 to 2020
about a 25% increase
how much did the government increase corperation tax by
19% to 23% for companies with profits more than £250,000 in 2023
how much did average house prices rise in 2021
10%
what is household debt in 2021
2 trillion, double that of 2003
how much has Africa’s intra regional trade change?
it has doubled from 6% to 12% from 1990 to 2011
what does singapore have which is considered to be the best
-they have the worlds largest port
what are singapore’s restrictions on trade
they have one of the lowest tariff rates in the world, thus contributing to export led growth
what is singapore’s gini coefficent
in 2020, it was 0.35, around the same value as the UKs
what is their highest income tax rate?
it is only around the low 20%s, about under half of the UKs highest
what is singapore’s national debt to GDP ratio?
it was around 130% of GDP in 2021, much higher than the UKs, but their credit rating is still AAA
what has their economic growth rate been like due to high export led growth?
from 1961 to 1991, GDP per capita growth was on average around 10% a year
how has FDI helped the transfer of skills?
between 1970 and 1980, when ESSO came to singapore, the % of top management being local went from 0% to 75%
what is the UKs current unemployment?
3.8% - this is below the natural rate of unemployment of around 4%, suggesting a positive output gap
what % of the uk economy is services?
around 80%
what has happened to economic inactivity rate in the UK?
-it has risen about 1.5% to 21.4%
why are there job vacancies in the UK?
employment rate has fallen to around 75%, suggesting people are leaving the work force
how has the UK prevented structural unemployment?
-the offered the furlough scheme to prevent firms and industries from closing down, thus keeping long term unemployment at just 1%
what is evidence that the UK is experiencing cost-push inflation?
producer price inflation is almost 12%
how low is UK productivity?
about 20% below the average of the other g7 countries
how has inequlity increased in the UK?
0.34 in 2010 to 2020, but now it is 0.36
How much of world GDP do emerging markets and developing countries hold?
58%
What is singapores exports to gdp ratio?
About 170%
How much do taxes reduce the gini coefficient?
In 2018, the gini coefficient before taxes was around 0.46, after tax, disposable income gini coefficient was reduced to around 0.34
