The UK economy is emerging slowly from recession, but growth is moderate and unemployment is high. In addition, the UK is facing inflation above the government’s target of 2%. Also, the government have taken several steps to reduce the burden of government borrowing; these spending cuts and tax rises are likely to keep the economic recovery at a modest pace.
Economic Growth
| GDP (QoQ) | 10Q3 | 0.8 % | |||
| Service sector output | 3m to Sep | 2.1 % | |||
| Industrial production | 3m to Oct | 3.8 % | |||
| Manufacturing output | 3m to Oct | 5.6% | |||
| Households’ consumption | 10Q3 | 1.7% | |||
| Retail sales volumes | Oct | -0.1% | |||
| Whole economy investment | 10Q3 | 2.8% | |||
| Goods exports (volumes) | 3m to Oct | 12.0 | |||
| Goods imports (volumes) | 3m to Oct | 11.6 | |||
| Current account balance, £bn | 10Q2 | -7.4 | |||
| Business Investment (Provisional) | 10Q2 |
1.9% |
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Unemployment
| Labour market & earnings | |||||
| Unemployment, mn | 3m to Oct | 2.50 | |||
| Unemployment rate, % | 3m to Oct | 7.9 | |||
| Claimant unemployment, mn | Nov | 1.47 | |||
| Claimant rate, % | Nov | 4.5 | |||
| LFS total in employment, mn | 3m to Oct | 29.1 | |||
| LFS employment rate, % | 3m to Oct | 70.6 | |||
| Workforce jobs, mn | Sep | 30.7 | |||
| Headline average earnings %4 | 3m to Oct | 2.3 | |||
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Inflation
| Inflation & prices | |||||
| CPI | Nov | 3.3 | |||
| RPI | Nov | 4.7 | |||
| RPIX | Nov | 4.7 | |||
| Producer output prices (nsa) | Nov | 3.9 | |||
| Producer input prices (nsa) | Nov | 9.0 | |||
| Halifax house prices | Nov | -0.7 | |||
| Nationwide house prices | Nov | 0.4 | |||
Government Borrowing
- More on UK Public Sector Debt
- UK Debt increased rapidly after 2007 because of the recession, falling tax receipts and financial bailout for banks.
- The government have taken several steps to try and reduce the level of government borrowing such as tax increases and spending cuts. However, the stabilisation of public sector debt to GDP depends on continued economic growth.
- Gross Public Sector Debt includes temporary financial sector intervention
- Public Sector debt excludes financial sector intervention.
Sources:
Related
Just go by high taxes on alcohol and other beverages. as thet are used daily; economy will grow daily…:-)
i am from india
raise the taxes
introduce new taxes in country
keep taxes on achool
hi…how the government fails when they restrict export of goods and services…????
thanx…
tell me about externalities and the diagrames for that….!!!!