theme 2 case studies - UK Flashcards
1
Q
What is the GDP growth rate?
A
- IMF projects the UK economy to grow by 1.6% in 2025
- BoE forecast 0.75% growth for 2025
2
Q
What is UK inflation & CPI?
A
- Inflation = 3% (Jan 2025)
- Annual CPI inflation is expected to rise from 2.5% (2024) to 3.2% (2025)
3
Q
What is UK unemployment rate?
A
4.4% (Jan 2025)
4
Q
What is the UK base rate?
A
4.5% (cut from 4.75% in March)
5
Q
What is the impact of tariffs on the UK?
A
- Implementation of U.S. tariffs, including a 10% tariff on global imports, is projected to disrupt UK exports - affecting manufacturing & automotive sectors
- May contribute to a slowdown in economic growth, with forecasts suggesting growth below 1% through 2026
6
Q
What changes were made to fiscal policy in the budget?
A
In the March 2024 Budget, the government announced a 2% reduction in National Insurance contributions, aiming to stimulate consumer spending & economic activity
7
Q
What is current UK consumer/business confidence?
A
- As of March 2025, British business confidence remained steady at a 6-month high, supported by a rebound in retail sales
- But, upcoming tax hikes & increased household energy bills pose challenges
8
Q
UK Budget deficit (2025)
A
£70.6bn
9
Q
UK national debt (2025)
A
£2.79tn (March 2025)
