uk economy

UK National Debt

The UK national debt is the total amount of money the British government owes to the private sector and other purchasers of UK gilts.In August 2017, UK public sector net debt was £1,773.3 billion equivalent to 88% of GDPSource: (page updated Sep 23rd 2017)Source: ONS debt as % of GDP – HF6X | PUSF – public sector finances at ONS Budget deficit – annual borrowingThis is the amount…

Buy British campaigns

Buy British campaigns

At different times there have been campaigns to ‘Buy British’ – patriotic efforts to support the economy. The campaigns seem quite popular, but usually fade out, having made little difference to major macro-economic variables. It is a form of economic nationalism and similar campaigns can be seen in many different countries. Buy British campaigns can make more difference when they are targeted at particular industries, such as farming, steel.   Examples of Buy British Campaigns1930s  A ‘Buy British’ campaign  was launched…

Impact of rising population in the UK

Impact of rising population in the UK

The UK population is projected to increase by 9.7 million over the next 25 years from an estimated 64.6 million in mid-2014 to 74.3 million in mid-2039. (ONS). Approx. 50% of the population increase is expected due to net migration. This is a look at the economic and social impact of a rise in the population.  The UK is bucking the trend of many Western economies, such as Italy, France and Japan – who are seeing low birth rates, an ageing population…

Threats to UK economy

Threats to UK economy

The UK economy is showing signs of economic recovery. Positive economic growth, falling unemployment, and after a long gap – rising real wages. However, despite positive economic growth, there are many potential threats that could derail the economy and lead to a period of prolonged weak growth or even future recession.Some of the main threats to UK economy include: 1. Weak global growth The global economy is struggling to meet previous rates of economic growth. With the exception of US, many economies are…

Recent economic growth compared to trend growth

Recent economic growth compared to trend growth

These are a few interesting graphs which give different perspective on the same situation. i.e. recent economic recoveries – looking at both UK and Spain. Firstly, UK economic growth in the past four years.After weak / negative growth in 2011 and 2012, the UK has been growing at a quarterly rate of approx 0.6%. This equates to an annual rate of approx. 2.4% – which is very close to the UK’s long run trend rate of economic growth (2.5% is…

government-spending-percent-gdp-obr-14

Economic policies of J. Corbyn

Some of the economic policies of J.Corbyn ‘Corybnomics’ include:Ending austerity / more relaxed rules on budget deficits. People’s Quantitative easing ‘Corbyn’s Quantitative Easing’ Higher taxes on high income earners Renationalisation of railways / energy sector National investment bank / funded by removing corporate subsidies / People’s Q.E.Ending Austerity A frequent economic criticism of the current UK conservative government is that they place too much stress on reducing the budget deficit. Cutting spending and reducing the deficit is harming economic growth at a time when recovery is weak. Since the start of the recession, UK…

What has borrowing ever done for me?

A reader on twitter asked – How has government borrowing helped me recently? I’m tempted to paraphrase as – What has borrowing ever done for me? – just so that I can make a reference to Monty Python and the Life of Brian? – And what have the Romans ever done for us? – apart from education, sewers, wine, roads, peace, law and order  … (youtube) I’ve answered this question several times before:Why does the government borrow? Should government’s borrowBut, I frequently get asked…

Nature of the UK economic recovery

Nature of the UK economic recovery

A look at the nature of the UK economic recovery. Is the recovery sustainable? Who has benefited the most from recovery? Which groups of people have not benefited from the recovery? In the past two years, the UK economy has posted relatively impressive growth figures.The UK posted annual growth of 2.6% between Q3 2014 and Q3 2013. ONS It is impressive compared to Europe, which is stuck in recession. However, the recovery is less impressive when compared to the lost output since…