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2025 Annual Real GDP
1.3%
Output Gap
Negative Output Gap
Services as a % of GDP
79%
% Breakdown of AD Components
Consumption = 60%
Investment = 19.5%
Gov Spending = 21.5%
Net Exports = -1.7%
Unemployment rate
4.9%
Economic inactivity rate
21%
Consumer confidence
Very weak
Inflation Rate
3.3%
Current Account Deficit
2.4% of GDP
Investment
Lowest investment in G7 Countries
Productivity
Very poor - productivity gap
‘productvitiy puzzle’ - Stagnation of labour productivity following the 2008 GFC
Minimum Wage
£12.71
Fiscal Budget Deficit
4.5% of GDP
National Debt
93% of GDP
Corporation Tax
25%
VAT
20%
Bank Rate
3.75%
Quantitative Easing
Peaked at £895 bn. Now reversing through quantitative tightening
Inflation peak
11.1% in 2022 due to surging energy prices
Interest rates during GFC
Cut to 0.5%