explaining the gdp growth figure
DESCRIPTION
One slide explaining how the ONS in the UK combine the growth in different sectors of the economy to calculate the growth in total UK GDP.TRANSCRIPT
EXPLAINING THE GDP GROWTH FIGURE
GDP INCREASED 0.8% BETWEEN Q4 2013 AND Q1 2014 0.8%
Question: How do the Office for National Statistics get to this 0.8% figure?
Answer:They look at different industries: services, production, construction and agriculture.The contribution an industry makes to total growth in UK GDP is dependent on:
• How big that industry is relative to the whole economy – it’s weight • The growth in that industry.
Explaining the GDP Growth Figure
Announcement from the Office for National Statistics:
Explaining the GDP Growth Figure
The growth figures between Q4 2013 and Q1 2014:
The current weights: (based on the UKeconomy in 2010)
Services
Production
Construction
Agriculture
77.8% 15.2%
6.3% 0.7%
0.9% 0.8%
0.3%
-0.7%
The weights and growth figures for each industry are combined to give the overall growth rate in total UK GDP.
Between Q4 2013 and Q1 2014 the overall growth rate in UK GDP was 0.8%.
This chart shows that 0.8% broken down by the contribution from each industry.
Explaining the GDP Growth Figure
Series10
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
Contribution to total GDP growth
(percentage points) 0.8% 0.70
Services
0.11Production
0.02Construction0.00Agriculture
The weights and growth figures for each industry are combined to give the overall growth rate in total UK GDP.
Between Q4 2013 and Q1 2014 the overall growth rate in UK GDP was 0.8%.
This chart shows that 0.8% broken down by the contribution from each industry.
Explaining the GDP Growth Figure
Series10
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.90.8% 0.70
Services
0.11Production
0.02Construction0.00Agriculture
Services has the biggest weight and saw the largest positive change
so it is very dominant
Contribution to total GDP growth
(percentage points)
The weights and growth figures for each industry are combined to give the overall growth rate in total UK GDP.
Between Q4 2013 and Q1 2014 the overall growth rate in UK GDP was 0.8%.
This chart shows that 0.8% broken down by the contribution from each industry.
Explaining the GDP Growth Figure
Series10
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.90.8% 0.70
Services
0.11Production
0.02Construction0.00Agriculture
Services has the biggest weight and saw the largest positive change
so it is very dominant
Agriculture is only a small section of the UK economy so it has a very small weight.Therefore even though there was acontraction in the agriculture industry, it had zero impact on total GDP growth
Contribution to total GDP growth
(percentage points)