The macroeconomic outlook is extremely uncertain for many countries and depends critically on the future path of Covid-19.
In this short video we look at how uncertainty is affecting the decisions taken by households and businesses which – in aggregate – can have a big impact on macroeconomic objectives such as growth and employment.
What do we mean by uncertainty?
Uncertainty is "the lack of certainty, a state of limited knowledge where it is impossible to exactly describe the existing state, a future outcome, or more than one possible outcome."
The scale of the shock which has hit the UK economy is illustrated by data which shows that per capita incomes have dropped to such an extent that GDP per head expressed in real terms is now back to the level it was at twenty years ago.
Uncertainties for households /families
Uncertainties for businesses / corporations
Uncertainties for government
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