UK 2024 Economy Stats Flashcards
Inflation - stats
Inflation is typically reported on a monthly basis, reflecting the change in prices compared to the same month in the previous year. These monthly reports are then used to calculate an annual average inflation rate for the entire year.
According to the office of national statistics (ONS), the Consumer Prices Index (CPI) rose by 2.5% in the year to December 2024.
The Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 3.5% in the 12 months to December 2024
(Keep in mind that the target for the government and the Bank of England is 2%)
GDP - stats
The gross domestic product of the United Kingdom in 2024 was around 2.56 trillion British pounds
- the figure is taken from the ONS and GDP is in real terms
Unemployment / inactivity stats
Unemployment rate
Aged 16+ seasonally adjusted (Sep - Nov 2024)
4.4%
↑ 0.5pp on previous year
Economic inactivity
~22.2%
UK gini coefficient - stats
~ 0.35
(0.357 for the FYE 2022)
Annual Growth Rate (2023) - stats
0.1% (very stagnant)
Annual Growth rate (2024) - stats
0.9%
UK annual growth targets - stats
2% real annual growth is seen as a good benchmark
The UK’s long-term average annual GDP growth (pre-COVID) was around 2–2.5%
GDP per capita - stats
~£36,000
GDP breakdown - stats
Services ~79%
Manufacturing ~ 14%
Construction ~ 6%
Agriculture ~ 1%
Consumer Confidence - stats
Very Weak
Producer Price Inflation - stats
0.6% (2024) - promising
(Considers costs of inputs for firms, indicator of future inflation)
Current Account Deficit - stats
3.2% of GDP
Productivity and Investment - stats
Very poor (ever since 2008 financial crisis which led to multiple bank failures)
Min. Wage - stats
£11.44/hour (2024) very high relative to other countries
Exchange Rate - stats
(2024)
£1=$1.24
£1=€1.16
-Very weak relative to previous values
-This should work to fix the current account deficit, however this hasn’t happened since we don’t have a large manufacturing sector, and our services aren’t very price sensitive because they are bought for their quality
- it has mostly caused supply-side problems by making imports more expensive
National Debt (2024) - stats
~98% of GDP
Budget Deficit (2024) - stats
4.2% of GDP
(If this progresses, there is risk of the uk defaulting on its debt… which is very bad)
Income tax - stats
0% up to £12,570
The highest tax band is 45% for incomes greater than £125,000
Corporation tax - stats
25% (2024)
VAT (placed onto the price of ‘most’ items) - stats
20% (2024)
Bank of England base interest rate - stats
(2024)
5.25%
Bank willingness to lend - stats
Good
Savings Ratio - stats
10.5% (proportion of disposable income that is saved and not spent)
QE - stats
(2024)
£895 bn (mostly from Covid, given to workers/employers. However, workers have not become wealthier, suggesting much of this money ended up in financial markets—raising asset prices like stocks and housing. This primarily benefits asset holders, who tend to be wealthier, rather than boosting wages or consumer spending.)
