Introduction to Economic Environment and Measures

Workshop 1 - Introduction to the Course and the Economic Environment

• Any financial decision should consider the wider economic environment, both domestic and global
• Economic environment impacts investments
• This course increases awareness of factors impacting the value of money or assets
• The course applies to personal life and advising clients
• Covers networking, interviews, personal finance, and dealing with clients effectively
• Includes financial awareness

1.4 UK Economic Measures, Environment and Growth Prospects

• Gross Domestic Product (GDP) is the main statistic for measuring the economy's state
• The UK Office for National Statistics (ONS) produces GDP statistics
• GDP measures the value of goods and services produced by all sectors in the economy
• Also measures the value of goods and services purchased by households and the government, plus investment in buildings and machinery
• Includes the value of all generated income in terms of profits and salaries
• An increasing GDP means economic growth; a decreasing GDP means contraction
• Two consecutive quarters of contraction define a recession
• GDP is a marker of economic health, but does not measure quality of life (health, education, environment)
• GDP does not tell the complete economic or wellbeing story of a country
• The graph below shows UK GDP figures between Q1 2008 and Q2 2024 (details of specific figures are not available).

1.4.1 Economic Growth

• Continued focus on GDP as an economic growth measure
• Specific figures related to UK GDP growth are not displayed in a form suitable for summarization.

This quiz covers the basic concepts of economic environment and its impact on financial decisions. It focuses on UK economic measures, particularly GDP, and how these metrics influence investments and personal finance. Participants will learn about the importance of the economic context in both personal and professional advising roles.