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UK application Flashcards

1
Q

GDP

A

£2.8 trillion

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2
Q

Growth

A

2024 - 0.8%

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3
Q

OBR projected growth

A

2025 - 1%
2026 - 1.8%
2027 - 1.7%

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4
Q

CPI inflation

A

3%

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5
Q

Unemployment

A

4.4%

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6
Q

Economically inactive

A

25%
400k rise since 2020

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7
Q

CA balance

A

-2.8% GDP
$53bn

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8
Q

Budget balance

A

-4.5% GDP

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9
Q

Debt

A

98% GDP

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10
Q

Base rate

A

4.5%

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11
Q

Exchange rate

A

$1:£0.77

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12
Q

Gini

A

0.35

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13
Q

Sectoral distribution

A

Agriculture - 1%
Industry - 18%
Services - 80%

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14
Q

Poverty

A

8 million working-age adults
4 million children (30%)
22%
- most vulnerable groups include larger families, minority groups, disabled people, informal carers
UK median income is £35k, relative poverty line is £22k

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15
Q

Inflation

A

High of 11.1% in Oct/22 due to Russia-Ukraine war increasing energy prices
Dropped to 2% in May/24 due to:
- drops in gas prices
- monetary policy
- slowdown in global economic growth

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16
Q

Unemployment

A

Increase of 0.3% in 2024
- October budget announced min. wage rises and ↑ in national insurance contributions
↑ integration of AI and automation
Decrease in business confidence due to trade tensions

17
Q

Trade and CA

A

UK runs a consistent CA deficit:
- overvalued currency
- strong domestic demand
- stagnation in productivity growth
2016-23 - ↑ £289bn exports
4th largest importer in the world

18
Q

Exports

A

USA - 22.3%
Germany
Netherlands

19
Q

Imports

A

USA - 13.2%
Germany
China

20
Q

Top exports

A

Financial services - $75bn
Travel
Telecoms
Cars

21
Q

Supply-side weaknesses

A

R+D spending is 1.7% of GDP
Low public and private sector investment
Regional disparities
Labour market issues:
- skills shortages - Brexit
- gig economy
- geographical/occupational immobility

22
Q

Demand-side policies

A

GFC
Temporary VAT cut from 17.5% - 15% to boost consumption
575% - 0.5% interest rates in 2 years - ineffective due to low availability of credit
- quantitative easing to ↑ money supply and consumption

23
Q

Supply-side policies

A

Spring statement:7Freeze health-related universal credit for existing claimants T £397 per week until 2029
Stricter eligibility checks for PIP - estimated to push 250k people into relative poverty
Plans to force councils to build more homes - OBR projects ↑ 170k above average in houses in 5 years
£625mil to be spent in England to boost existing schemes to train workers in the construction sector

24
Q

Trade deal

A

Joined CPTPP and now has access to tariff-free trade with many pacific rim nations, such as NZ, Australia, Vietnam

25
Q

Trade deficit in goods

A

2024 - $53bil

Macroeconomics (4 decks)

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