UK Economy Stats and Macroeconomic Performance Flashcards

A collection of 50 vocabulary flashcards detailing specific statistics, percentages, and macroeconomic terminology regarding the UK economy as of the 2025-2026 period.

Economic Growth (Last Year)

The UK's growth rate recorded last year was $1.3\%$.

Quarterly Growth Rates (Late 2025)

Growth in both of the last two quarters of 2025 was only $0.1\%$, signaling a stagnating economy.

OBR Growth Forecast

The Office for Budget Responsibility forecast for growth this year is $1.1\%$.

IMF Growth Forecast

The International Monetary Fund's recent growth forecast for the UK is $0.8\%$.

Potential Growth Rate (Current)

The current estimated maximum growth rate an economy can achieve without being inflationary is around $1\%$.

Potential Growth Rate (Historical Comparison)

Prior to the financial crisis, it was around $2.5\%$, then fell to $1.5\%$ between the crisis and COVID.

Negative Output Gap

An indicator of slack or spare capacity in the economy, where the unemployment rate is higher than the natural rate.

GDP per capita (UK)

The average income per head in the UK, which has reached $\pounds39,000$.

Nominal GDP

The total size of the UK economy measured in current prices is $\pounds3.04\text{ trillion}$.

Real GDP

The total size of the UK economy adjusted for inflation is approximately $\pounds2.8\text{ trillion}$.

Services Sector Output

The dominant sector of the UK economy, accounting for $79\%$ of total output.

Manufacturing Sector Output

The portion of UK output derived from manufacturing, which stands at $14\%$.

Construction Sector Output

The percentage of total UK output produced by the construction industry is $6\%$.

Agriculture Sector Output

The smallest sector of the UK economy, contributing only $1\%$ to output.

Unemployment Rate (Current)

The reported figure is $4.9\%$, though it is considered a blip due to rising economic inactivity.

Employment Rate

The percentage of people of working age who are currently in work is $75\%$.

Labour Party Employment Target

The target employment rate set by the Labour party is $80\%$.

Economic Inactivity Rate

The percentage of working-age people who are not in work and not seeking work is $21\%$.

Long-term Sickness

A primary driver of rising economic inactivity, specifically relating to mental health concerns like depression, stress, and anxiety.

Youth Unemployment Rate

The rate of unemployment for individuals aged 16 to 24, which currently stands at $16\%$.

NEETs

The percentage of youngsters aged 16-24 who are Not in Education, Employment, or Training is $12.8\%$.

Job Vacancies Trend

Vacancies are falling significantly, indicating that firms are facing low demand and high rising costs.

Wage Growth (Current)

The current rate of wage growth is $3.6\%$, which is falling due to a loosening labor market.

Current Inflation Rate (CPI)

The Consumer Price Index inflation rate recently rose from $3\%$ to $3.3\%$.

Peak Inflation (October 2022)

The point at which UK inflation reached its highest level in recent years at $11.1\%$.

Target Inflation Rate

The official inflation rate target for the UK is $2\%$.

Disinflation

The economic phenomenon experienced in the UK for two years where prices rose but at a slower rate.

Core Inflation

The underlying inflation rate, calculated by removing volatile items like food and energy from the CPI basket.

Producer Price Inflation (PPI)

Also known as 'factory gate inflation,' it tracks the change in price of goods once they depart the manufacturer.

Household Inflation Expectations

The rate at which households expect prices to rise in the coming year, currently at $5.4\%$.

Current Account Deficit (Recent)

The current size of the UK's current account deficit is $1.1\%$ of GDP.

Current Account Deficit (Average)

The average UK current account deficit over the last decade has been between $3\%$ and $4\%$ of GDP.

UK Minimum Wage

The current hourly rate for the minimum wage, which is $\pounds12.71$.

GBP to USD Exchange Rate

The value of the British pound relative to the US dollar is $\$1.35$.

GBP to EUR Exchange Rate

The value of the British pound relative to the Euro is $\text{€}1.15$.

Budget Deficit Forecast

The forecast borrowing for the last fiscal year is $4.5\%$ of GDP, or $\pounds138\text{ billion}$.

COVID Budget Deficit Peak

During the main COVID fiscal year, the government's budget deficit reached $15\%$ of GDP.

National Debt (% of GDP)

The total stock of debt held by the UK government is $93.1\%$ of GDP.

Bond Yields

The interest rate on government bonds, currently at $5.1\%$.

Personal Income Tax Allowance

The first $\pounds12,570$ of individual income that is not subject to tax.

Fiscal Drag

The process where frozen tax bands and rising wages result in workers paying a higher proportion of their income in tax.

Highest Income Tax Rate

The top rate of income tax is $45\%$, which applies to income above $\pounds125,140$.

Corporation Tax

The direct tax on business profits, which increased from $19\%$ to $25\%$ in 2024.

VAT (Value Added Tax)

The rate of this indirect tax on goods and services remains at $20\%$.

Income Gini Coefficient

A measure of income inequality in the UK, which currently stands at $0.329$.

Wealth Gini Coefficient

A measure of wealth inequality in the UK, which is significantly higher than income inequality at $0.59$.

Bank of England Base Rate

The current central bank interest rate is $3.75\%$.

Savings Ratio

The proportion of disposable income that is saved rather than spent, currently at $9.9\%$.

Quantitative Easing (COVID Injection)

The amount of new money pumped into the economy during the COVID period was $\pounds450\text{ billion}$.

Quantitative Tightening (Current Bond Stock)

The total value of bonds currently held by the Bank of England after tightening is $\pounds558\text{ billion}$.