Readers Question: Why is it that when there is low economic growth, unemployment rises? A low rate of economic growth can cause higher unemployment. Though it is not always the case. During 2010-13 the UK experienced a slow rate of economic growth, but unexpectedly unemployment fell. If there is negative economic growth (recession) we would …
Economic growth means an increase in national income, but does economic growth actually help to reduce relative poverty and income inequality – or can economic growth exacerbate existing income inequalities? There are two types of poverty: Relative poverty: This is when income is a certain percentage less than the average income. For example, in the …
Readers Question: How can a developing country grow without inflation? Economic growth can lead to inflation, for example, if demand rises faster than productive capacity, then we will see rising prices. However, economic growth is compatible with low inflation, and developing economies which can increase productive capacity and general efficiency can see rising living standards …
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%. …
The UK recovery paints an unusual situation. We have both positive economic growth and falling real wages. How can we have economic growth with falling real wages? Real wages are not the only source of economic growth. We can see growth from other components of AD – I (Investment), G (Government spending) plus net exports …
Readers Question: What is the UK’s target for economic growth? Economic growth is the annual % increase in national output (Real GDP) The UK doesn’t have an explicit target for economic growth (for example, we have an inflation target of CPI 2%+/-1.) However, the government will aim to achieve economic growth close to the …
Ireland economic growth since the crisis Source: OECD Stats Economic outlook no.92 Dec 2012 | Accessed March 2013 (2014 e) Ireland GDP at constant market prices
Latest economic stats for economic growth in the European Union Real GDP growth in 2012 -0.6% Growth in Q1 2013 -0.2% Latest at Eurostat Euro 17 GDP UK vs Euro GDP Source: ONS – ECB Economic growth within different EU countries Note figures for 2013 and 2013 are forecasts (in my opinion OECD are being …