Economic perfomance?

Question

How is economic performance defined?

What do we mean by the 'economic performance' of the UK economy?How would you describe it currently?

Answer 1

Economic performance is measured and through the following indicatiors:

1. Growth rate of real GDP per capita.- higher the better

2. The rate of inflation.- lower and stable the better

3. The trend in budgetary/ fiscal defcit as percent of GDP - the lower the better

4. The trend ic current account deficit as percentage of GDP - the lower the better

5. The growth rate in productivity of labor and capital.: the higher the better

6. The trend in income inequality (gini Coeffecient): any decrease in inequality is better and any significant increase is worse.

It is not possible always for an economy to score high in terms of all the above indicators. A judgement has to be made after considering all the indicators.

UK economy has performed in the recent period less well than in the past several years, but overall the performance is still considered good considering the performance of other countries particularly in the current global economy environment where the earlier booming World economy has shown definite signs of weak growth, fast rising prices of food and fuel throughout the World.