UK Facts Flashcards
1
Q
Growth
A
7.4% 2021
2
Q
Output gap
A
+0.7%
3
Q
GDp/Capita
A
31,400
4
Q
Total GDP
A
2.4Tn
5
Q
Makeup of GDP
A
Services 79%
Manufacturing 14*
Construction 6%
Agriculture 1%
6
Q
Unemployment
A
4.2% 2021
7
Q
Employment
A
75.5%
8
Q
Wage growth
A
4.3%
9
Q
Inflation
A
Reached 5.5% expected above 8%
10
Q
Real income per capita
A
$43,000
11
Q
Fiscal deficit
A
11.9%
12
Q
National debt
A
Above £2tn - 100% of GDP
13
Q
Corporation tax
A
rising to 23%
14
Q
Interest
A
0.5%
15
Q
Minimum wage
A
£9.50
16
Q
Quantitative easing
A
£895bn in total
17
Q
Monetary policy UK
A
Before COVID
- Interest down to 0.1%
- QE £450bn project, £895bn total
However 9% CPI so inflation
After COVID
- Higher interest to 1%
- Quantitative tightening to reduce inflation, household debt and sustainable growth and encourage saving
Demand side shock, impact on indebted, investment
18
Q
Fiscal policy UK
A
- Wage subsidies
- Cheque to NHS
- Spending on welfare
VAT cuts
Business rate exemptions
Why?
-Growth, less unemployment, avoid deflation encourage inflation
However
- Budget deficit 14% of GDP debt 100% of GDP
- Inflation 9%
19
Q
Components of AD
A
Consumption - 60-65 - 63%
G - 18%
I - 17%
Net deficit - -1-4%
