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 …
When I moved to Oxford in 1995, I don’t remember seeing any coffee shops apart from the odd independent coffee/tea houses. There was no major chain like – Starbucks, Costa, Coffee Republic. Now in 2010, I can visualise at least 10 off the top of my head. Costa coffee shops seem to be springing up …
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 …
Readers Question: Hello I recently saw a programme How China Fooled the World – with Robert Peston and I was wondering what threats and opportunities does the growth of economies like China and India provide to the UK economy? According to the IMF, in 2010, the Chinese economy was $5,878 billion – second only to …
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
Back in the summer of 2010, Apple launched the iPad. It was launched to great excitement and it seems the initial euphoria was well placed. From sales of zero at the start of 2010, the tablet market has expanded to over 100 million units a year as we come towards the end of 2013. Sales …