Macro UK Economy Stats 2025

Question 1

Annual Growth Rate (2024)

Answer 1

1.1%

Question 2

Quarterly growth rate

Answer 2

0.1% Q4 2024, 0.0% Q3 2024

Question 3

Annual growth forecast

Answer 3

1% OBR, 0.75% BOE

Question 4

Output gap

Answer 4

-0.6%

Question 5

GDP per capita

Answer 5

£36000

Question 6

Total GDP

Answer 6

£2.851 trillion

Question 7

Unemployment rate

Answer 7

4.4%

Question 8

Employment rate

Answer 8

75.1%

Question 9

Economic inactivity rate

Answer 9

21.4%

Question 10

Wage growth

Answer 10

5.9%

Question 11

Job Vacancies

Answer 11

Falling

Question 12

Youth unemployment

Answer 12

13.3%

Question 13

Consumer confidence

Answer 13

Very weak

Question 14

Business confidence

Answer 14

Very weak

Question 15

CPI Inflation rate

Answer 15

2.6%

Question 16

Core inflation rate

Answer 16

3.4%

Question 17

Producer price inflation

Answer 17

0.3%

Question 18

Inflation expectations

Answer 18

3.9%

Question 19

Wage growth

Answer 19

5.9%

Question 20

Current Account Deficit

Answer 20

2.6% of GDP

Question 21

Productivity and investment

Answer 21

Very poor (especially after GFC and Brexit respectively)

Question 22

Minimum wage for over 21s

Answer 22

£12.21/ hour

Question 23

Exchange rate

Answer 23

Historically Weak
£1=$1.32
£1=€1.16

Question 24

Why is the weak pound in the UK generally a bad things for the current account?

Answer 24

We lack a major manufacturing base (only 14% of GDP)- hard to take advantage of exports
Also what we tend to export dominantly are non-price sensitive services (Inelastic PED)- hard to take advantage of cheaper exports
Also, what we tend to import are necessity imports which we lack domestic substitutes for, making those necessity imports more expensive (undesirable)

Question 25

US and Euro Area- effect on export demand

Answer 25

US is slowing and Euro Area is stagnating, reducing export demand

Question 26

Forecast for budget deficit as a % of GDP (2024-2025)

Answer 26

High at 4.8% GDP- Gov borrowing of £137 billion

Question 27

National Debt

Answer 27

95.5% of GDP

Question 28

Bond Yields

Answer 28

4.67%

Question 29

Income tax bands

Answer 29

Frozen until April 2028 inducing fiscal drag (forecast to earn Gov extra £45bn a year by 2028), higher rate of 45% used to apply on those over £150,000, now just over £125,000

Question 30

National insurance on employees

Answer 30

Fallen from 12% to 10% to 8% Supply- side measure- reduce economic inactivity

Question 31

National insurance on employers

Answer 31

Gone up

Question 32

Corporation tax

Answer 32

Increased last April from 19% to 25%

Question 33

Tax burden

Answer 33

Highest it’s been in the UK since the 1940s

Question 34

VAT

Answer 34

20%

Question 35

Gini Coefficient

Answer 35

Increased to 0.357

Question 36

Bank of England Base Rate

Answer 36

4.5%

Question 37

Average lending rate

Answer 37

4.75%

Question 38

Banks willingness to lend

Answer 38

Good

Question 39

Savings ratio

Answer 39

12%

Question 40

All- time quantitative easing

Answer 40

£895 billion

Question 41

What percentage of GDP is the services sector?

Answer 41

79%

Question 42

What percentage of GDP is the construction sector

Answer 42

6%

Question 43

What percentage of UK GDP is agricultural?

Answer 43

1%