Real GDP grows when the quantities of labour, physical capital and human capital grow and when technology advances. As per the WEO (2023), global growth is forecasted to fall from 3.2 percent in 2022 to 3.0 percent in 2023 and 2.9 percent in 2024. This is happening within a very uncertain global environment, compounded with the cost-of-living crisis.
Using data from the Conference Board, calculate 1) the yearly growth accounting equations and 2) sustainable growth rate of output for the period 2000 to 2022 for a) the U.K and b) a country of your choice. Discuss some of the drivers of growth for the U.K over this 22-year period and provide a short comparison to drivers of growth for the country chosen for (b).