Hey everyone here are your weekly updates on the UK and Global Economies.

UK Economy

- Manchester United has revealed plans for a new 100,000 seater stadium which is estimated to cost £2bn 

- The BofE forecasts that consumer price inflation will rise to approximately 3.7% in the third quarter of 2025

Global Economy

- Trump has threatened a 200% tariff on EU alcohol

- EY expects India's real GDP to grow by 6.4% in 2025 due to increased investment and government spending

---

There are less than 60 days until A-Level Econ. I got 96% last year and if you want access to all of the notes that I used, click here

---

This week's 25 marker: 'Evaluate the effects of a depreciation on the UK economy'

Point- Huge impact. WPIEEC (Weak Pound Imports Cheap Exports Expensive) Imports become more expensive -> costs of production increase -> LRAS shifts inwards -> PL increases to PL1 -> reduced international competitiveness -> X-M decreases -> AD shifts in -> Real GDP decreases.

Eval- Exports will be cheaper in the short run as shown by the J-curve. This means that the reverse may happen instead.

Point- Huge impact -> decreased exports because of higher production costs which translate to higher prices -> decreased derived demand for export industry -> unemployment increases -> gov spending on benefits increases -> government spending on servicing increases -> larger opportunity cost -> less gov spending -> AD in -> Real GDP decreases.

Eval- Imports more expensive means that the UK domestic market grows because our exports (financial services) have inelastic demand so higher prices will increase export revenues -> unemployment decreases as the export industry grows -> more employment = incomes rise -> consumption increases-> AD out -> Real GDP increases