#TrumpTariffs
How fast is the economy of the United Kingdom growing and what is the GDP?
The UK economy contracted by 0.3% in April, according to the latest official figures, which was more than expected.
The strength of the economy affects things like wage increases for workers and the amount of taxes the government can collect to pay for services.
What is GDP and how is it calculated?
GDP stands for Gross Domestic Product, and it is a measure of all economic activities by businesses, governments, and individuals in a country.
In the UK, the Office for National Statistics (ONS) publishes new GDP figures monthly. However, quarterly figures – which cover three consecutive months – are considered more important.
Most economists, politicians, and business people prefer to see GDP rising steadily.
This is because it usually means that people are spending more, additional jobs are being created, more taxes are being paid, and workers are receiving better wage increases.
When GDP decreases, it means the economy is contracting – which can be bad news for businesses and workers.
If GDP falls for two consecutive quarters, it is known as a recession, which can lead to wage freezes and job losses.