Business Context

Business context report

Introduction

This report is going to interpret data on the real GDP growth, inflation and unemployment. This report is going to identify the main macroeconomic development over the years 2000 till 2007 for the UK. The report is also going to discuss how far macroeconomic business environment has changed during these periods. Another item that is going to be looked at in this report is the main macroeconomic trends, and also how macro developments relate to business opportunities.

* Main macroeconomic trends using charts or tables for key variables eg GDP growth, inflation, unemployment, consumer spending, investment spending, budget balance [G-T] money supply growth, interest rates, exchange rate, trade balance [X-M], house prices, stock market [FT index], oil prices.

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GDP Growth

Gross Domestic Product (GDP) growth is a measure of national income and output for a country’s economy. GDP is explained as the total market value of all final goods and services produced within the country in a given period of time. GDP is a measure the output made by factors of assembly to be found in the domestic economy. The frequent way to measuring and understanding GDP is the expenditure method is; GDP= C+I+G(X-M), this means GPD is consumption plus gross investment plus government spending plus exports. Gross Domestic Product is an important part of the UK national accounts and provides a measure of the total economic activity in a region.

UK uses three different notations to approaching are used in the estimation of one GDP estimate. These are;

* GDP beginning the output or production approach. This approach means that the GDP measures the sum of the value added created through the production of goods and services within the economy. This approach provides an estimate of GDP Growth this can be used to show how much different industries put in the economy

* GDP starting from the income approach. The approach...