Forecasting Model for the UK Economy

For the purposes of this model, the current year is 1998 and next year is 1999. (This will be updated in due course.) Annual average values are used throughout. Please replace the default values for exogenous variables in the nine boxes below:

% ratio of tax revenues to GDP this year
% ratio of tax revenues to GDP next year
% ratio of tax revenues to GDP subsequent year
% ratio of government expenditure to GDP this year
% ratio of government expenditure next year
% ratio of government expenditure subsequent year
% average interest rate (yield on T-bills) this year
% average interest rate (yield on T-bills) next year
% average interest rate (yield on T-bills) subsequent year

Click below to run the forecasting model:

Forecast values for this year are:

unemployment rate = %
real GDP growth rate = %
retail price inflation rate = %

Forecast values for next year are:

unemployment rate = %
real GDP growth rate = %
retail price inflation rate = %

Forecast values for subsequent year are:

unemployment rate = %
real GDP growth rate = %
retail price inflation rate = %