UK Economy Key Stats

Question 1

Annual growth rate

Answer 1

1.2% (positive output gap of 0.3%)

Question 2

Forecast Annual Growth rates

Answer 2

1. 5%
2. 3%
3. 3%
4. 4%
5. 5%

Question 3

Real GDP/capita

Answer 3

£30,000

Question 4

Total GDP

Answer 4

£2 trillion

Question 5

GDP breakdown

Answer 5

79% services
14% manufacturing
6% construction

Question 6

Unemployment rate

Answer 6

4.2% (NRU 4.25%)

Question 7

Youth unemployment

Answer 7

11.5%

Question 8

Long term unemployment

Answer 8

1.1%

Question 9

Wage growth

Answer 9

2.8%

Question 10

Consumer confidence

Answer 10

Weak

• brexit vote
• shock election
• brexit uncertainty

Question 11

Income tax bands

Answer 11

£11850 at 0%
20%
40%
45% over £150k

Question 12

CPI inflation rate

Answer 12

2.5%

Question 13

Inflation expectations

Answer 13

2.9%

Question 14

Current account deficit

Answer 14

-4.1% GDP (big trade deficit)

Question 15

Productivity and investment

Answer 15

Big weakness

Question 16

Exchange rate

Answer 16

£1 = $1.37 (recovery)
£1 = €1.14 (weak)

Question 17

Eurozone economy

Answer 17

Strong recovery

2.7% growth 2018

Question 18

US economy

Answer 18

Full employment

Strong growth of 2.9%

Question 19

Budget deficit

Answer 19

2.1% GDP

£50 billion

Question 20

National debt to GDP

Answer 20

86%

Question 21

Bond Yields

Answer 21

1.4%

Question 22

Corporation tax

Answer 22

19%

Question 23

Gini coefficient

Answer 23

0.34

Above OECD average 0.31

Question 24

Base rate

Answer 24

0.5%

Low

Question 25

Average lending rate

Answer 25

1.5%

Low

Question 26

Consumer and business confidence

Answer 26

Weak

Question 27

Quantitative easing

Answer 27

£435 billion

Question 28

Philip Hammond committed how much to National Productivity Investment fund over next 5 years

Answer 28

£31 billion

Question 29

Supply side policies

Long term investments

Answer 29

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

Question 30

Supply side policies

Market based policies

Answer 30

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