UK Economy Key Stats Flashcards
Annual growth rate
1.2% (positive output gap of 0.3%)
Forecast Annual Growth rates
- 5%
- 3%
- 3%
- 4%
- 5%
Real GDP/capita
£30,000
Total GDP
£2 trillion
GDP breakdown
79% services
14% manufacturing
6% construction
Unemployment rate
4.2% (NRU 4.25%)
Youth unemployment
11.5%
Long term unemployment
1.1%
Wage growth
2.8%
Consumer confidence
Weak
- brexit vote
- shock election
- brexit uncertainty
Income tax bands
£11850 at 0%
20%
40%
45% over £150k
CPI inflation rate
2.5%
Inflation expectations
2.9%
Current account deficit
-4.1% GDP (big trade deficit)
Productivity and investment
Big weakness
Exchange rate
£1 = $1.37 (recovery) £1 = €1.14 (weak)
Eurozone economy
Strong recovery
2.7% growth 2018
US economy
Full employment
Strong growth of 2.9%
Budget deficit
2.1% GDP
£50 billion
National debt to GDP
86%
Bond Yields
1.4%
Corporation tax
19%
Gini coefficient
0.34
Above OECD average 0.31
Base rate
0.5%
Low
Average lending rate
1.5%
Low
Consumer and business confidence
Weak
Quantitative easing
£435 billion
Philip Hammond committed how much to National Productivity Investment fund over next 5 years
£31 billion
Supply side policies
Long term investments
Cut corporation tax to 17%
Increase in income tax allowances (tax cuts)
Increase spending on apprenticeship levies
Introduction of technology based A levels
£1.7 billion for local authorities for infrastructure projects
Cross Rail and HS2 projects
Increased spending on digital infrastructure
Supply side policies
Market based policies
Ease planning permission for new homes
National living wage £7.83 (over 25) and NMW for under 25
Benefit caps
Deregulation Cutting £10 billion of red tape
Increase trade with countries outside EU
Northern powerhouse by more powers to local councils - reduce London dependency
