UK Economy 2011 … Money Flows

UK 2011 Money Flows


This is an attempt to represent the UK economy graphically …rather than simply numerically and may be a bit busy with all the numbers, however GDP can be derived both from the consumption formula as well as from the income method.

GVA = Population Consumption and Capital Expenditure (861.52) + Government Consumption and Capital (370.35) + Corporate Capital Expenditure (134.79) – Deficit on International Trade (23.26) = £ 1343.39 billion.

GDP = GVA (1343.39) + Vat (193.55) = £ 1536.94 billion (published GDP)

I consider that my choice of using GVA rather than GDP shows a more realistic picture as Vat is paid by the consumer not the corporations who are only acting as agents for the collection of the tax.


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