UK Economy Stats

• Annual Growth Rate (2023)

  0.1 % last year - very poor performance
• Quarterly Growth Rate

  -0.3 % (Q4 2023)
• Annual Growth forecast

  0.8% (2024)
• Output gap

  0.1% - actual growth (because of how poor potential growth is)
• GDP / capita

  £36,000
• Total GDP

  ≈ £2.53 trillion

  Services 79%, Manufacturing 14%

  Construction 6%, Agriculture 1%
• Unemployment Rate

  4.2% - rising figure, in recession (cyclical unemployment)
• Employment Rate

  74.5% - lower than it was pre covid
• The most recent Labour Force Survey conducted by the Office for National Statistics only had 15,000 participants usually there are 100,000 participants therefore the results are less trustworthy - many economists believe the unemployment rate to be much higher.
• Economic inactivity rate - people of a working age not willing, physically able and not seeking work


  22.2% - gone up, rise in long term illness (makes the labour force tighter)
• Wage Growth

  5.6% - due to rising inactivity, those in work have got significant wage bargaining power
• Job vacancies


  falling (loose labour market)
• Youth unemployment


  11% - between 16-24 (figure has reduced al lot from Covid peaks)
• Consumer confidence


  very weak - cost of living, house price, worries about job security
• Inflation Rate (CPI)


  3.2 % - on it's way down (disinflation), from peaking at 11.1 % in Oct 2022, caused by supply side factors (food, electricity, fuel)
• Core Inflation Rate (CPI - without food, electricity, fuel, gas)


  4.2% - underlying rate of inflation
• Current account deficit

  3.2% GDP
• Productivity and investment

  very poor - not very competitive, low business investment, high cost of production
• Minimum wage

  £11.44 / hr
• Exchange Rate

  Weak £1 = $1.24 and £1 = €1.16
• Budget deficit

  4.2 % GDP (2023 - 2024)
• National debt

  98% GDP
• Bond Yields

  4.2 %
• Income tax bands- fiscal drag


  Progressive income tax system - frozen to 2029
• National Insurance


  Cut - 12% to 10% to 8%
• Corporation tax


  25%
• VAT

  20%
• Gini coefficient


  0.357
• BoE Base Rate


  5.25%
• Average Lending Rate

  6.25%
• Bank willingness to lend 


  Good
• Business confidence


  poor but positive signs
• Savings Ratio


  10.5%
• QE

  £895 bn - more than half during Covid
• The global adult population 5.1 billion
• The poorest half of the world's population have just 8% of global income
• The richest 10% have 52% of global income
• 62% of those in poverty have at least one family member in work
• Over 14.5 million people in the UK are in relative poverty after housing costs
• If you add up marginal utility for each unit you get total utility