The UK government is considering a Clean Manufacturing Programme. It would fund technical training and new low-emission factories that produce goods currently imported into the UK. Table 1 shows selected current indicators and forecasts if the programme is introduced.
| Economic indicator | Current | Forecast with programme |
|---|---|---|
| Real GDP growth | 0.8% | 2.0% |
| Unemployment rate | 6.2% | 4.8% |
| Inflation rate | 2.0% | 3.3% |
| Exports of goods and services | £700 billion | £735 billion |
| Imports of goods and services | £752 billion | £773 billion |
| Current account balance | -£52 billion | -£38 billion |
[ITEM A] Manufacturers have pledged to create 160,000 apprenticeships and jobs if the programme begins. Training providers say many unemployed workers could gain qualifications for these roles. Supporters expect new factories to replace some imports, increase exports and use low-emission technology. They argue that the programme could improve growth, employment, the current account and environmental outcomes together.
[ITEM B] The programme requires substantial government funding. Construction firms warn that shortages of skilled labour, energy and building materials could raise costs and prices. Some new factories would import machinery. Critics also argue that faster growth may cause congestion and that regions without factories may receive few benefits.
Define the term 'economic growth'.
Using Table 1, calculate the forecast percentage decrease in the size of the current account deficit. Give your answer to one decimal place.
Explain two possible benefits of the Clean Manufacturing Programme for UK workers.
Using Table 1, analyse the likely effect of the Clean Manufacturing Programme on the UK's current account balance.
Do you think the UK government should introduce the Clean Manufacturing Programme? Use Items A and B and your own economic knowledge to justify your view.
189 exam-style questions on AQA GCSE Economics 2.2 Government objectives, covering 2.2.1a The main economic objectives, 2.2.1b Conflicts between government objectives, 2.2.1c Other objectives and ethical considerations, 2.2.2a The significance of economic growth, 2.2.2b Causes, costs, benefits and policies for growth, 2.2.2c GDP measures and calculations, 2.2.3a Measuring employment and unemployment, 2.2.3b Types and causes of unemployment, 2.2.3c Consequences and policies for unemployment, 2.2.4a What inflation is, 2.2.4b Measuring inflation with the CPI, 2.2.4c Causes, consequences and control of inflation, 2.2.5a Balance of trade and balance of payments, 2.2.5b Current account surpluses and deficits, 2.2.5c Policies to influence the balance of payments, 2.2.6a Income and wealth inequality in the UK, 2.2.6b Causes and consequences of inequality, and 2.2.6c Redistributing income and wealth. Each one has a worked solution and a mark scheme showing where the marks go.