Uk Flashcards
Annual growth rate
0.1% (2023)
Annual growth rate forecast for 2024
0.8%
When was the UK last in recession?
Q3, Q4 of 2023
What is the UKs potential growth rate?
1%
What is the output gap in the UK?
-0.1%
What is GDP per capita?
£36,000
What is total GDP?
2.53 trillion (services 79%)
Unemployed rate
4.2% (above the natural rate)
Employement rate
74.5%
Economic inactivity
22.2%
What is happening to job vacancies?
Increasing job vacancies ( loosening labour market)
CPI inflation in 2023
3.2% (disiniflation - peaking at 11.1% caused by supply side factors) (wage growth is keeping inflation high)
Core inflation rate
4.2% ( there is lower price pressures than the underlying rate - ongoing inflation fight) there is falling PPI - future CPI rate will come down
Inflation expectations
3.3% ( remain stubborn prevenatative of falling growth as they drive age inflation)
UK current account deficit
3.2% GDP (structural problems)
Producitivty
Very Poor
Investment
Very poor
Minimum wage
£11.44
Exchange rate
Very weak - one pound is 1.24 dollar, compared to 1.60 before the brexit vote
Why has the weak pound not had a large effect at reducing a persistent current account deficit?
Services based economy - price insensitive - bought for quality
Budget Deficit
4.2% (GDP 2023-24)
National debt
98% GDP ( debt interest payments are more than what the U.K. government spends on education yearly)
Income Tax bands what has happened?
Frozen until 29
What is the top tax rate?
45% (higher rate starts at a lower figure just over £125,000).
National Insurance
Cut twice in recent budgets - 12% to 10% to 8%
Corporation tax
25%
VAt
20%
Gini
0.357 (rising)
B of E base rate
5.25% (economists think this has peaked)
Sav8mgs Ratio
10%
QE
£895 bn
