There are a few factors that have to be taken into consideration when assessing how well an economy is doing. These factors are called economic indicators. The economic indicators that I shall be using to gauge how well the UK's economy is faring are inflation (both RPI and CPI), unemployment rates, balance of payments and economic growth. I shall begin by evaluating inflation. RPI Inflation in July 2004 was 3%, whereas in July 2005, it was 2.4%. The upward …showed first 75 words of 579 total…

…showed last 75 words of 579 total…growth of the United Kingdom. Inflation suggested that the economy is doing worse this year, as would economic growth. However, unemployment rates suggest that the economy is in a similar position to twelve months ago, and balance of payments suggests that the economy is doing better. So, with all economic indicators taken into consideration, I have to say that the UK's economy is now in a worse position to what it was twelve months ago.