Economics key facts

• fell to just £1/$1.07 under truss
• GDP at 3.1 Trillion June 2023
• absolute poverty 


  defined by the world bank at under $1.90 a day
• what was the new community movement?

  1970s the government of South Korea sent raw materials and plans rural villages in order to increase infrastructure. as a result roads, bridges and irrigation systems improved and Korean farmers could trade more.
• although in 2011 over $1.3 billion was given to Somalia in Aid, 70% disappeared into the pockets of corrupt officials
• gini coefficient= A/A+B
• top 8 richest men in the world own the same as the bottom 50%
• the UK government spends over £1.7 billion a year on benefits and £160 billion on pensions.
• the R>G hypothesis. the rate of return of assets (R) > the growth rate (G) meaning that those already owning assets are able to increase their wealth more than those who don't have assets
• 0.1% growth rate in 2023
• quarterly growth rate: -0.3% (Q4 2023)
• annual growth forecast for 2024: 0.8%
• output gap of -0.1%
• potential growth rates of 1%
• GDP per capita: £36,000
• total GDP: £2.5 trillion
• 79% of GDP made up of services, manufacturing 14%, construction 6% and agriculture 1%
• unemployment: 4.2%
• employment rate of 74.5%
• economic inactivity rate: 22.2% risen post covid
• wage growth: 5.6%
• job vacancies are falling (loose labour market)
• youth unemployment: 11%
• inflation: 3.2%
• extremely bad consumer confidence due to: cost of living crisis, high inflation, interest rates, personal tax rises, poor house price rise, increasing unemployment
• CPI: 3.2 %
• producer price inflation (PPI): 0.6%

  tracks the costs of production for firms
• Minimum wage of £11.44
• exchange rate (weak £):

  £1 = $1.24

  £1 = € 1.16
• USA economy is extremely strong while the EU is stagnating
• UK gov budget deficit of 4.2% (2023-24)
• Government bond yields: 4.2%. historically high however has fallen since truss.

  represents the cost of government borrowing
• 0% on £ 12,570. 45% tax at £ 125,140. used to be £ 150,000

  tax bands frozen to 2029
• cooperation tax 19% to 25%
• Gini: 0.36 (has risen in recent years)
• banks willingness to lend is good
• resolution foundation estimates that top 1% richest in the UK own 18% worth of all assets