Supply-side Performance
Tutor2u Economics
April 2008
tutor2u™
Key Macroeconomic Objectives
Inflation, jobs and growth
10
10
Unemployment
Percent
9
9
Inflation
8
8
7
7
6
6
5
5
4
4
3
3
2
2
1
1
0
0
-1
-1
GDP growth
-2
-2
-3
-3
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07 08
tutor2u™
Source:
Reuters EcoWin
Actual and Potential GDP for the UK
1.4
1.4
1.3
1.3
1.2
1.2
1.1
1.1
1.0
1.0
0.9
0.9
0.8
0.8
0.7
0.7
0.6
0.6
80
82
84
86
Potential Output
88
90
92
Real GDP
94
96
98
00
02
04
06
thousand billions
thousand billions
£ thousand billion at constant 2003 prices. Source: OECD World Economic Outlook
08
tutor2u™
Source:
Reuters EcoWin
United Kingdom - Potential GDP and Trend Growth
3.00
3.00
2.75
2.75
2.50
2.50
Trend Growth Rate
2.25
2.25
2.00
1.75
1.75
1.50
1.50
1.4
1.4
1.3
1.3
1.2
1.2
1.1
1.1
1.0
1.0
0.9
0.9
0.8
0.8
0.7
0.7
Potential GDP
0.6
0.6
0.5
0.5
76
78
80
thousand billions
2.00
Real GDP (thousand billions)
Percent
Source: OECD World Economic Outlook
82
84
86
88
90
92
94
96
98
00
02
04
06
08
tutor2u™
Source:
Reuters EcoWin
United Kingdom Labour Productivity
2003=100
Index of output per hour worked, whole economy, seasonally adjusted
110.0
110.0
107.5
107.5
105.0
105.0
102.5
102.5
100.0
100.0
97.5
97.5
95.0
95.0
92.5
92.5
90.0
90.0
87.5
87.5
85.0
85.0
82.5
82.5
95
96
97
98
99
00
01
02
03
04
05
06
07
tutor2u™
Source:
Reuters EcoWin
UK Labour Productivity and the Economic Cycle
Annual % change in output per worker for the whole economy
5
5
4
4
Percent
Real GDP
3
3
2
2
1
1
Labour productivity
0
0
-1
-1
-2
-2
-3
-3
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
tutor2u™
Source:
Reuters EcoWin
UK Unemployment and Consumer Price Inflation
Percent
per cent
10
10
9
9
8
8
7
7
6
6
5
5
4
4
Unemployment
3
3
Inflation
2
2
1
1
0
0
89
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07 08
tutor2u™
Source:
Reuters EcoWin
Income Per Head for selected EU Countries
Index GDP per head, EU (25 countries) average = 100 (source Eurostat)
150
150
140
140
130
130
Ireland
Germany
EU25=100
120
120
UK
110
110
100
100
90
Spain
90
80
80
Slovenia
70
70
95
96
97
98
99
00
01
02
03
04
05
06
07
08
tutor2u™
Source:
Reuters EcoWin
UK Balance of Trade in Selected Goods
Annual trade balance, £ billions
10
10
Crude oil
Semi-manufactures
0
0
-10
-20
-20
-30
-30
billions
GBP (billions)
Food, beverages & tobacco
-10
-40
-40
Finished manufactures
-50
-50
-60
-60
80
82
84
86
88
90
92
94
96
98
00
02
04
06
tutor2u™
Source:
Reuters EcoWin
Gross Domestic Expenditure on R and D
% of GDP
Percentage of GDP
3.50
3.50
3.25
3.25
3.00
3.00
2.75
2.75
2.50
2.50
2.25
2.25
2.00
2.00
1.75
1.75
1.50
1.50
90
91
92
93
94
United Kingdom
95
96
97
Germany
98
99
00
01
EU-25
02
03
04
05
06
Finland
tutor2u™
Source:
Reuters EcoWin
UK Labour Productivity per Person Employed
EU25=100
Labour productivity relative to the EU average
113
113
112
112
111
111
110
110
109
109
108
108
107
107
106
106
105
105
104
104
95
96
97
98
99
00
01
02
03
04
05
06
07
08
tutor2u™
Source:
Reuters EcoWin