UK economy limps on despite wage rises — but households and public services still feel squeezed

The UK has seen wage inflation finally catching up with prices — a partial win that eases some cost-of-living pain — yet for many families the squeeze remains acute, especially on staples like housing, food and energy where price rises bite hardest. At the same time home ownership remains out of reach for many, while public services such as the health service groan under under-investment and demographic strain. The result: an economy showing modest signs of recovery, yet real incomes and welfare-service quality still lag.

Is the UK economy really as bad as we think it is? Here is the truth of the matter | Jonathan Swarbrick | The Guardian

1. List some of the major economic shocks since 2008 that the UK economy has faced, according to the article. Identify whether the shock is a demand or supply side shock and whether it was negative or positive.

2. What are some of the positive developments in the UK economy mentioned in the article — and how likely is it that these positives will continue over the next few years?

3. Identify and discuss three key headwinds facing the UK economy — according to the article — that could dampen growth or living standards in the medium term.