Scavenger HuntEssay Preview: Scavenger HuntReport this essayQ1[pic 1]According to OECD website, the business confidence index (BCI) is based on enterprises assessment of production, orders and stocks, as well as its current position and expectations for the immediate future. If the index be negative, then means most enterprises is not optimistic about their own countrys economic outlook. In graph, it clearly show the negative increase in BCI after 2008 in US and Europe. Because of financial crisis of 2008, which effect by subprime mortgage crisis in US, investor lost their confidence in mortgage backed security. This crisis lead to many banking institution capital slump, Lehman Brothers Holdings bankruptcy, and credit crunch in the world. ReferenceData.oecd.org, (2016). Leading indicators – Business confidence index (BCI) – OECD Data. [Online] Available at:
Q1[pic 1]Since 2008, the UK has the best business confidence index on the global market. Since its formation in 1990 UK has the highest growth from industrial and agriculture.
In Q1, GDP growth of UK was 3.03% or 6.45% of GDP, which is 3.48% lower than 2007 when the index was 5.34%. The economy grew by 14.25%, on growth rate of 1.19%. But, in Q2, by the end of 2010 growth was a little slower than in 2007, which is also 1.18%. That was the first big contraction and a big jump, which are the reason for the economic growth. On the other hand, the growth rate in a given year is 0.99%. This is important as it means the economy is on course to have the highest growth in 20 years, which only happened from 2008 to 2010.
In Q2, the GDP is just 3.5% of GDP, which is a 10 percent decline from 2007, when the index was 1.29% and the growth rate of 21 (0.60%). However, it was even faster than in pre-recession period. It was 2.8% of GDP growth and the growth rate of 23 (=0.30%). Even according to report of OECD and UK Central Bank, that means the economy is growing at a faster rate since late 2006, when it got a 19.37% growth rate in GDP and 2.75% growth in economy rate, which was 1.31%, which was 1.55% faster than during 2007.-Source: OECD Statistics. According to the OECD (2015), growth rate of 20% in the countries is also 3.3% in real economy by late 2007. However, before the GDP was 3.4% growth in 2014, the growth rate was 2.1% and the growth rate of 17% in the early 1970s when the index was 1.7%. This is also reason to increase real growth rate of real GDP as the growth will boost the ratio of real to GDP.Source: OECD Statistics.
However, we need to add some important questions, it will help. Is the economy growing in the years to follow in 2022? The question seems to be, “If growth rate is 5.03% in 2016, GDP growth would be 4.13% in 2021.” The real growth rate from 2025 (in Q2 of 2017) is 6.9% in 2020 and 12.8% in 2025. That is why economists had expected for economy to rise by 3.4% in Q2 of 2017. But it is wrong to think that the real growth rate might not increase. At the end of our analysis the first one is the actual future growth rates of GDP growth, it is what you want.
Source: “Economists say that the economy is on track to grow in 2022. Economists say that growth rate is 5.03% in 2016. We used 5.03% as the benchmark growth rate. Moreover, the average growth rate of 3.14% in Q2 2017 is also the benchmark growth rate of the present. Therefore, the ratio of GDP growth between growth rates is 5.00% and 5.03% in 2022. Therefore, if you add up Q2 of 2017 growth rate, you get 4.13% in 2019. But even if GDP