News
  • Login
  • Home
  • News
  • Sport
  • Worklife
  • Travel
  • Reel
  • Future
  • More
Saturday, June 7, 2025
No Result
View All Result

NEWS

3 °c
London
8 ° Wed
9 ° Thu
11 ° Fri
13 ° Sat
  • Home
  • Video
  • World
    • All
    • Africa
    • Asia
    • Australia
    • Europe
    • Latin America
    • Middle East
    • US & Canada

    Bouncy castle operator cleared in tragedy that killed six children

    Hey, stop whining, do something on climate change

    South Sudan – the African country producing fashion’s favourite models

    China’s driverless lorries hope to expand

    The furniture fraud who hoodwinked the Palace of Versailles

    Moment Chile earthquake rocks live TV show

    Body of Thai hostage recovered from Gaza, Israel says

    Riot police and protesters clash after LA immigration raids

    Lunch cook tells trial meal was ‘special’

  • UK
    • All
    • England
    • N. Ireland
    • Politics
    • Scotland
    • Wales

    Second boy dies after M4 slip road minibus crash near Reading

    Rod Stewart cancels US gigs ahead of Glastonbury legends slot

    Police appeal after fatal SUV crash in West Lothian

    Michael Sheen’s children’s book tackles homelessness

    Murdered farmer was ‘kind, strong and loving’

    SNP to “learn lessons” as Labour wins crucial by-election

    Leicester v Sale team news: Youngs & Cole on Tigers bench, Curry & Roebuck back for Sharks

    Two men found guilty over Waringstown murder

    Up to £3bn could be spent in Scotland

  • Business
    • All
    • Companies
    • Connected World
    • Economy
    • Entrepreneurship
    • Global Trade
    • Technology of Business

    Tariffs prompt record plunge in US imports, cutting trade deficit

    Why food firms are scrambling to cut down on ingredients

    Oreo maker sues Aldi in US over ‘copycat’ packaging

    Wollaston-based Dr Martens profits slump by more than 90%

    Arrests made in crackdown by regulators

    Donald Trump doubles US steel and aluminium tariffs to 50%

    Europe cuts interest rates as Trump’s tariffs loom

    UK inflation number for April too high after data blunder

    UK temporarily spared from Donald Trump’s 50% steel tariffs

  • Tech
  • Entertainment & Arts

    Dancers say Lizzo ‘needs to be held accountable’ over harassment claims

    Freddie Mercury: Contents of former home being sold at auction

    Harry Potter and the Cursed Child marks seven years in West End

    Sinéad O’Connor: In her own words

    Tom Jones: Neighbour surprised to find singer in flat below

    BBC presenter: What is the evidence?

    Watch: The latest on BBC presenter story… in under a minute

    Watch: George Alagiah’s extraordinary career

    BBC News presenter pays tribute to ‘much loved’ colleague George Alagiah

    Excited filmgoers: 'Barbie is everything'

  • Science
  • Health
  • In Pictures
  • Reality Check
  • Have your say
  • More
    • Newsbeat
    • Long Reads

NEWS

No Result
View All Result
Home Reality Check

How does the UK compare with other economies?

May 24, 2024
in Reality Check
9 min read
250 3
0
491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter


Reuters Jeremy Hunt on Downing Street on 22 May 2024Reuters

On the day that Rishi Sunak called a July election and the latest figures showed inflation falling, the government has been talking about its record on the economy.

Chancellor Jeremy Hunt made a number of claims on BBC Radio 4 on Wednesday, including comparisons between the UK economy and other countries.

We have looked at some of them.

Inflation

Mr Hunt said: “Inflation [in the UK] is now lower than in the eurozone or in the United States of America, but prices are still a lot higher than they were a year ago.”

He’s right. Inflation measured by the Consumer Prices Index (CPI) was 2.3% in the UK in the year to April 2024.

The main measure of consumer inflation in the US in April 2024 was 3.4%. And in the eurozone, inflation in April was 2.4%.

But the UK’s inflation rate peaked higher than in the US and the eurozone, at 11.1% in October 2022.

Growth

Mr Hunt said that “the UK economy will grow faster over the next six years than in France, Germany, Italy or Japan”, according to the International Monetary Fund (IMF).

It should be said that forecasting what the economy will be like six years in the future is highly uncertain.

The IMF did indeed predict that the UK economy, as measured through its gross domestic product (GDP), would be 8.8% bigger by the end of 2029 than at the start of this year.

That would be more growth than it forecasts for France (8.3%), Germany (5.7%), Italy (3.5%) or Japan (4.4%).

But it would be smaller than the other two members of the G7 major advanced economies: US (13.7%) and Canada (10.8%).

It should also be mentioned that other forecasters are less optimistic about the UK, at least in the short term.

The Organisation for Economic Co-operation and Development (OECD), for example, predicts that the UK will have the worst growth in the G7 next year. The OECD is a group of countries which aims to assist economic development, raise living standards and promote growth in world trade.

Chart showing six-year projections for economic growth from the IMF

Living standards

Talking about what has happened to living standards in the UK, Mr Hunt said: “Living standards have fallen by more in Germany, Austria or Sweden.”

The chancellor did not specify which measure of living standards he was talking about, or over what period.

BBC Verify could not find the figures to support his claim, so we asked the Treasury.

It told us Mr Hunt was talking about the OECD’s measure of “gross disposable household income” over a specific period – comparing July to September 2022 with October to December 2023.

This is borne out by the OECD data, although the choice of time period seems arbitrary, as does the selection of comparator countries.

Chart showing change in UK living standards since summer 2022, compared with Sweden, Germany and Austria. The UK has performed better than those three countries.

If you look at UK living standards between the last three months of 2019 – before the pandemic started – and the end of last year, they have performed worse than those countries and also worse than the G7 average.

Chart showing that UK performs worse for living standards when comparing final three months of 2023 with 2019. US change in real gross disposable income per capita of households between Oct-Dec 2019 and Oct-Dec 2023 was 6.1%. The UK change was -0.7%.

The G7 (Group of Seven) is a group of seven big industrialised economies.

Investment

“We’ve attracted more than that [foreign direct investment] then anywhere in the world except the United States and China since 2010,” Mr Hunt said.

The Department for Business and Trade produces an overview of “greenfield foreign direct investment data”.

“Greenfield” refers to the entire new investment in a country.

This data shows that foreign investment in the UK grew by £498bn between 2010 and 2022. That’s lower than the US (£848bn) and China (£708bn), but higher than Germany (£222bn) and France (£133bn)

Another indicator of relative attractiveness of European countries to foreign investors by the accountancy firm EY suggests the UK has fallen behind France.

World Bank data on foreign direct investment as a share of the economy suggests that the difference between France, Germany and the UK is less pronounced than the greenfield data.

Additional reporting by Gerry Georgieva

BBC Verify logo
Presentational green line



Source link

Tags: compareeconomies

Related Posts

Ros Atkins on… Ukraine’s Operation ‘Spider’s Web’

June 7, 2025
0

Ukraine dubbed its operation inside Russia on 1 June "Spider's Web". New information continues to emerge about the daring...

Ros Atkins on… The White House claims on BBC Gaza coverage

June 6, 2025
0

White House Press Secretary Karoline Leavitt launched an attack on the BBC's coverage of reports that Israeli forces had...

Satellite images show Russian bombers destroyed in Ukraine attack

June 5, 2025
0

Paul Brown and Thomas SpencerBBC VerifyBBCNew satellite images and drone footage show serious damage inflicted on aircraft at several...

  • Ballyjamesduff: Man dies after hit-and-run in County Cavan

    510 shares
    Share 204 Tweet 128
  • Somalia: Rare access to its US-funded 'lightning commando brigade

    508 shares
    Share 203 Tweet 127
  • Uganda arrest over deadly New Year Freedom City mall crush

    507 shares
    Share 203 Tweet 127
  • George Weah: Hopes for Liberian football revival with legend as President

    506 shares
    Share 202 Tweet 127
  • Google faces new multi-billion advertising lawsuit

    506 shares
    Share 202 Tweet 127
  • Trending
  • Comments
  • Latest

Ballyjamesduff: Man dies after hit-and-run in County Cavan

August 19, 2022

Somalia: Rare access to its US-funded 'lightning commando brigade

November 23, 2022

Uganda arrest over deadly New Year Freedom City mall crush

January 3, 2023

Stranger Things actor Jamie Campbell Bower praised for addiction post

0

NHS to close Tavistock child gender identity clinic

0

Cold sores traced back to kissing in Bronze Age by Cambridge research

0

Second boy dies after M4 slip road minibus crash near Reading

June 7, 2025

Tariffs prompt record plunge in US imports, cutting trade deficit

June 7, 2025

Ros Atkins on… Ukraine’s Operation ‘Spider’s Web’

June 7, 2025

Categories

England

Second boy dies after M4 slip road minibus crash near Reading

June 7, 2025
0

An 11-year-old boy has become the second child to die after a minibus overturned on a motorway slip road.Othniel...

Read more

Tariffs prompt record plunge in US imports, cutting trade deficit

June 7, 2025
News

Copyright © 2020 JBC News Powered by JOOJ.us

Explore the JBC

  • Home
  • News
  • Sport
  • Worklife
  • Travel
  • Reel
  • Future
  • More

Follow Us

  • Home Main
  • Video
  • World
  • Top News
  • Business
  • Sport
  • Tech
  • UK
  • In Pictures
  • Health
  • Reality Check
  • Science
  • Entertainment & Arts
  • Login

Copyright © 2020 JBC News Powered by JOOJ.us

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
News
More Sites

    MORE

  • Home
  • News
  • Sport
  • Worklife
  • Travel
  • Reel
  • Future
  • More
  • News

    JBC News