The Annual Growth for UK GDP was 3.8 % in 1999. In The ‘UK GDP’ Published Accounts (Chained Volume Measure £1million) presented for the 3rd Quarter of 2006, published on 21.12.2006, the Overall GDP stood at £301.1 million, signifying a 0.7change since the last Quarter and 2.9 since the last year. (http://www/statistics.gov.uk./CCI/nscl.asp?ID=5900). The office of National Statistics revealed that UK GDP during the period grew by 0.4% from the previous quarter and 2.1% on a year-on-year basis. Both were downward revisions from rises of 0.5% and 2.7% respectively (http://www.forbes.com/markets/feeds/afx/2005/06/30/afx2117553.html). Whether this change of 2.9 measures to a “strong and strengthening” proponent, as ascribed by the Chancellor of the Exchequer, is a contentious issue.
Employment rates have changed in these years and some sectors reported an increase in employment while other sectors show a fall in the number of employment opportunities. In the context of the Labour Market, the employment rate was 74.5% and the unemployment rate was 5.5%. “The number of unemployed people increased by 197,000 over the year to reach 1.70 Million” (Http: www/statistics.gov.uk./CCI/nscl.asp? ID=5900 2006). Thus we find that the UK government has not been able to exactly control unemployment, which is a significant indicator of economic growth since the increase of job opportunities leads to higher earnings and consequently, more money in circulation.
Consumer expenditure accounts for 2/3 of the total UK’s domestic expenditure. The government expenditure reported an increase in this year’s expenditure and continues to rise at a steady rate of 0.7% in the 1st quarter of the previous year. As the Keynesian Theory has propounded, “if free market forces are not capable of regulating the level of economic activity, there is a clear case for state intervention” (Nellis, Parker. 1996).