Current State of UK Economy June 2008

The most important statistics

  • Inflation 3%
  • Economic Growth 2.5%
  • Unemployment 5.3%
  • Interest Rates 5%
  • Current Account deficit 4.2%
  • Government borrowing 2.8%
  • These statistics taken from National Statistics online. [link]
  • Note many forecast a deterioration in these statistics. Some statistics take a while to get updated.

Inflation Figures

  • CPI Inflation – 3%
  • RPI inflation – 4.2%
  • note CPI inflation is the official method it excludes housing costs and taxes.
  • Inflation at National Statistics

GDP and Economic Growth

  • GDP Growth in last quarter Q1 2008 – 0.4%
  • Annual Rate of growth in past 12 months – 2.5%
  • This is very close to the long run trend rate of growth
  • GDP at National Statistics

Interest Rates

Balance of Payments

  • Current account deficit in last quarter of 2007 was £8.5bn or 2% of GDP, lower than Q3 where deficit was 5.5% of GDP
  • Total current account deficit for last year was £57.8 bn or 4.2% of GDP
  • Current account deficit for 2006 was £50.7bn or 3.8% of GDP

Government Debt

  • Government deficit (the amount government spending greater than tax) was £39.4bn or 2.8% of GDP
  • Total National Debt was £618.8 billion, equivalent to 43.8 per cent of GDP.


  • Unemployment in UK has increased to 5.3% in May or 1.64 million (Labour Force Survey)
  • The Claimant Count method suggests 819,300 in May 2008 were unemployed up on April, but down 58,100 on last year

7 thoughts on “Current State of UK Economy June 2008

  1. well the graphic representation of the state of the economy gave me a good picture, but now im depressed. And on top of that im being evicted…. not a good time to be homeless huh? well i hope this recession lets up soon

  2. what the hell are these people on about?
    why are there so many information?
    I just want to know the current state!

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