macroeconomics Flashcards
Useful facts about the UK and global economy to use in essays
how many rulings has the WTO made since 1995
350
how much of Argentina is in poverty
50%
average yearly rate of return on assets
5.3%
access to internet - UK
95%
access to internet - India
30%
yearly energy consumption - UK
2764 kg oil per person
yearly energy consumption - India
673 kg oil per person
population in agriculture - India
44%
life expectancy at birth - India
63
India Corp. tax in 1990
dropped from 50% to 40%
how much aid did Kenya recieve from the UK in 2016
$650 million
what % of women work in Iran
17%
what % of women work in Tanzania
79%
what happened in Bangladesh in 1971
liberation war and a cyclone
how much debt relief did the world bank give Burundi in 2009
$883 million
how much did the IMF give to support Greece in the European credit crisis
$146 billion
what was the result of Denis Healey’s policies
financial crisis in 1976 and had to borrow $3.9 billion from IMF
how much does the Japanese government spend on pensions
10% GDP
how much does the Botswana government spend on pensions
less than 1% GDP
what proportion of Botswana’s population is under 15
1/3
how much does the Botswana government spend on education
7.8% GDP
who was Addy Wagener
Wagner’s law is that an increase in incomes leads to a larger increase in demand for government goods and services so public expenditure is income elastic.
evaluation of Wagner’s law
some public services are inferior e.g. public transport
what proportion of Denmark’s population trusts the government
50%
what proportion the US population trusts the government
18%
how does poor health affect productivity in the UK
UK firms lose £77 bn a year
what is Chinas national debt
$5 trillion
what is the US national debt
$ 20 trillion
what is the UK’s national debt
$ 1.7 trillion
informal jobs in India
90%
how much of south africa is in poverty
1/4
south africa Gini Coeficient
0.63
UK minimum wage
£7.70 an hour
National living wage
£8.21 an hour
UK annual growth rate in 2018
1.4% which is the lowest rate since the recession
UK quarterly growth Q4 2018
0.2%
UK chance of a recession in 2019
BoE says 25%
UK forecast growth from 2019
1.2%, 1.4%, 1.6%, 1.6%, 1.6%
UK output gap
OBR estimates positive output gap of 0.2% GDP
UK real GDP per capita
£29,000
UK total GDP
£2 trillion
UK GDP breakdown - services
79%
UK GDP breakdown - manufacturing
14%
UK GDP breakdown - construction
6%
UK GDP breakdown - agriculture
1%
UK unemployment
3.9%
UK NRU
estimated by OBR as 4%
UK youth unemployment
11%
Greece youth unemployment
39.9%
Greece unemployment
18.4%
UK long term unemployment
1.1%, 26% of unemployed
global growth
3.3% in 2019 - falling due to China slowdown, political uncertainty and trade tensions
China growth
expected to moderate to 6% by 2020, fiscal stimulus, trade tensions weakening exports
India growth 2018
7%
US growth
3% in 2018 but expected to moderate to 2.5 in 2019, full employment
Impact on EU countries of no-deal Brexit
15% decline in exports to UK
impact on the UK of no-deal brexit
2% reduction in GDP according to OECD analysis (leading to recession)
UK consumer confidence
very weak due to Brexit although retail figures are robust
UK inflation
1.9%
UK core inflation
1.8%
UK producer price inflation
2.4%
UK inflation expectations
2.7% so wage growth should remail high
UK wage growth
3.4%
UK current account deficit
4.4% GDP
UK productivity
19% below G7 average and 18% below pre - crisis trend
Eurozone growth
1%
pound to euro exchange rate pre Brexit vote
£1 = €1.30
pound to euro exchange rate now
£1 = €1.16
pound to dollar exchange rate pre Brexit vote
£1 = $1.50
pound to dollar exchange rate now
£1 = $1.30
impact of weak pound
cost push inflation but no impact on exports
causes of UK current account deficit
weak productivity and investment, wage growth, Eurozone economy slowdown
UK budget deficit
2% GDP and forecast to fall to 0.8% by 2023
UK national debt
83% GDP and forecast to fall to 74% by 2023
bond yields for UK government borrowing
1%
UK corporation tax rate
19%
UK corporation tax rate in 2010
28%
UK VAT
20%
UK Gini coefficient
0.34
UK Gini Coefficient in 2010
0.36
UK base rate
dropped to 0.25 in 2016 raised to 0.5 in 2017 then raised to 0.75 in 2018
UK average lending rate
1%
UK average mortgage rate
1.75%
UK quantitative easing
£435bn
main challenges currently facing the UK
US interest rates rising, weakening investment, poor confidence and China slowdown
positives about UK economy
labour market doing well, surge in renewables, creative industries
when was the last time the UK had a budget surplus
2001
when was the last time unemployment was this low
1975
UK average household debt
£58,540
WTO forecast for 2019 trade growth
2.6%
exports as a percentage of Germanys GDP
50%
exports as a percentage of UK GDP
30%
reasons for Germany slowdown
Trump America first, Volkswagen ‘diesel gate’, derivative of china economy, uncertainty surrounding brexit - car sales were hit first in 2008, electric vehicles
UK real wage growth
1.5%
UK national productivity fund
£31bn
UK supply side policies of education
£400m school funding in 2019, more funding for maths and computer science, apprenticeships levy, ‘T’ levels, subsidies/grants for adult training
UK supply side policies for Health
increase funding for NHS by £20.5 bn above inflation by 2023
UK National Roads Fund
£28.8 bn between 2020 and 2025
cost of crossrail
£18bn
expected cost of HS2
£60bn
spending on digital infrastructure
£16bn
personal allowance since Jan 2019
£12,500
personal allowance in 2010
£6,500 (just under)
Investment Allowance
£1m
UK deregulation supply side policies
cut £10bn red tape, Theresa May + planning permission, 1 in 3 out
Proportion of UK population rlin regions poorer than EU average
3/4
UK GDP in 1976
$232 bn
Percentage of international trade driven by TNCs
80%
UK trade to GDP ratio
Rose from 36% to 64% from 1972 to 2016
Proportion of world population who live outside the country in which they were born
3%
FDI to America in 2016
$144bn
Investment % GDP
15%
Consumption %GDP
61%
G %GDP
23%
net trade %GDP
-1%
%GDP from financial sector
14%
