UK economy stats

Question 1

annual growth rate

Answer 1

7.4% 2021

Question 2

quarterly growth rate

Answer 2

0.8% q1 2022

Question 3

annual growth forecasts

Answer 3

3.8% 2022 and 1.8% 2023

Question 4

output gap

Answer 4

+0.7%

Question 5

Gdp per capita

Answer 5

31400

Question 6

total gdp

Answer 6

2.4 trillion

services 79%, manufacturing 14%, construction 6%, agri 1%

Question 7

unemployment rate

Answer 7

3.8%

Question 8

employment rate

Answer 8

75.5% - lower than previously before covid times where it was 80%

Question 9

economic inactivity rate

Answer 9

21.4%

Question 10

youth unemployment

Answer 10

11.1%

Question 11

long term unemployment

Answer 11

1%

Question 12

wage growth

Answer 12

5.4%. low unemployment helping this figure

Question 13

job vacancies/consumer confidence

Answer 13

job vacancies at record high. labour shortages across many industries rn.
consumer confidence been high but falling sharply, as unemployment decreases and covid restrctions decreasing meaning consumer spending rise. 2021 90% of AD was spending

however recently this has plummeted because of cost of living crisis, inflation high and people concerned. lower consumption

Question 14

inflation rate -CPI

Answer 14

7% - peak of 8.4% forecasted

Question 15

core inflation

Answer 15

5.7% (CPI inflation but taking out volatile items from the basket of goods such as food, gas, electricity). the underlying inflation rate

Question 16

producer price inflation

Answer 16

11.9% - looks at the change in price of a basket of goods as they leave the factory gates. the price of goods as they are manufactued. one step before the CPI inflation rate

Question 17

inflation expectatinos

Answer 17

6%

Question 18

food price inflation

Answer 18

5.9%

Question 19

current account deficit

Answer 19

3.7% GDP

Question 20

productivity and investment

Answer 20

very poor ever since the financial crisis

Question 21

exchange rate

Answer 21

£1 = $1.26 - weak
£1 = $1.19 - recovery

Question 22

min wage

Answer 22

£9.50 an hour

Question 23

US and eurozone economy

Answer 23

US - strong growth

EU - recovery

Question 24

budget deficit

Answer 24

14. 5% of GDP 2020-21

5. 6% of GDP 21-22

Question 25

national debt

Answer 25

96% of gdp

Question 26

bond yields

Answer 26

up to 2% - becoming more expensive for the government to service this debt.

Question 27

income tax bands

Answer 27

0% up to £12570, 20%, 40%, 45% frozen to 2026. acts as a tax rise for workers. incomes rise in line w inflation. but bc it is fixed, those earning more will pay more tax and so will be worse off. known as fiscal drag

Question 28

national insurance

Answer 28

up by 1.25%

Question 29

corporation tax

Answer 29

19% to rise to 25% in 2023

Question 30

VAT

Answer 30

20%

Question 31

gini coefficient

Answer 31

0.363 (0.54 2010-20)

Question 32

BoE base rate

Answer 32

0.75%. has risen a lot since covid crisis. they raises this in order to fight high rates of inflation

Question 33

average lending interest rate

Answer 33

1.75%

Question 34

banks willingness to lend

Answer 34

GOOD

Question 35

business confidence

Answer 35

high but now is falling

Question 36

savings ratio

Answer 36

6.5%, decreasing dramatically

Question 37

QE

Answer 37

total £895 bn (£450 bn 2021) used three times. once during financial crisis, after brexit and during covid times.