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P5

GDP

GDP per capital

Inflation

Interest rate

UK China co

2.3 Trillion 7.3 Trillion

35477 3774

2.2% 1.9%

0.5% 6%

Inflation in the U.K The inflation rate in the United Kingdom was recorded at 2.20 percent in September of 2012. The United Kingdom Inflation Rate averaged 2.8 Percent reaching an all time high of 8.5 Percent in April 1991 and a record low of 0.5 Percent in May of 2000. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI (Consumer price index) which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy. Below shows a chart with historical data for the United Kingdom Inflation Rate. GDP (Groce Domestic Power) The Gross Domestic Product (GDP) in the United Kingdom was worth 2431.59 billion US dollars in 2011, according to a report published by the World Bank. The GDP value of the United Kingdom is equivalent to 3.92 percent of the world economy. Most recently, from 1960 until 2011, the United Kingdom GDP averaged 892.2 billion USD reaching an all time high of 2811.0 billion USD in December of 2007 and a record low of 72.3 billion USD in December of 1960. The gross domestic product (GDP) measures of national income and output for a given country's economy. The gross domestic product (GDP) is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time. Gross Domestic Per capital

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The Gross Domestic Product per capita in the United Kingdom was last reported at 28032.79 US dollars in 2011, according to a report published by the World Bank. The GDP per Capita in the United Kingdom is equivalent to 226 percent of the world's average. Historically, from 1960 until 2011, the United Kingdom GDP per capita averaged 18761.0 USD reaching an all time high of 28928.9 USD in December of 2007 and a record low of 10479.7 USD in December of 1960. The GDP per capita is obtained by dividing the countrys gross domestic product, adjusted by inflation, by the total population. Interest Rate The benchmark interest rate in the United Kingdom was last reported at 0.50 percent. Historically, from 1971 until 2012, the United Kingdom Interest Rate averaged 8.3 Percent reaching an all time high of 17.0 Percent in December of 1979 and a record low of 0.5 Percent in March of 2009. In the United Kingdom, the Bank of England has operational independence. Decisions on interest rates are taken by the Monetary Policy Committee (MPC). The Bank of England official interest rate is the repo rate. This repo rate applies to open market operations of the Bank of England with a group of counterparties (banks, building societies, securities firms). Inflation in China The inflation rate in China was recorded at 1.9 percent in September of 2012. Historically, from 1994 until 2012, China Inflation Rate averaged 4.3 Percent reaching an all time high of 27.7 Percent in October of 1994 and a record low of -2.2 Percent in March of 1999. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy. GDP (Groce Domestic Power) The Gross Domestic Product (GDP) in China was worth 7298.10 billion US dollars in 2011, according to a report published by the World Bank. The GDP value of China is roughly equivalent to 11.77 percent of the world economy. Historically, from 1960 until 2011, China GDP averaged 963.6 billion USD reaching an all time high of 7298.1 billion USD in December of 2011 and a record low of 46.5 billion USD in December of 1962. The gross domestic product (GDP) measures of national income and output for a given country's economy. The gross domestic product (GDP) is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time.

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Gross Domestic Per capita The Gross Domestic Product per capita in China was last reported at 2634.71 US dollars in 2011, according to a report published by the World Bank. The GDP per Capita in China is equivalent to 21 percent of the world's average. Historically, from 1960 until 2011, China GDP per capita averaged 601.7 USD reaching an all time high of 2634.7 USD in December of 2011 and a record low of 72.3 USD in December of 1962. The GDP per capita is obtained by dividing the countrys gross domestic product, adjusted by inflation, by the total population. Interest Rate The benchmark interest rate in China was last reported at 6.00 percent. Historically, from 1996 until 2012, China Interest Rate averaged 6.5 Percent reaching an all time high of 11.0 Percent in May of 1996 and a record low of 5.3 Percent in August of 2010. In China, interest rates decisions are taken by The Peoples' Bank of China Monetary Policy Committee. The PBC administers two different benchmark interest rates: one year lending and one year deposit rate. How inflation affects Tesco U.K. Inflation can affect Tesco in many ways, but most importantly inflation can affect Tesco if they do not keep up with the market; in other words Tesco will need to raise the prices on whatever product they sell because its more expensive for them to buy product so they will end up paying higher and higher prices on products and services from other companies. Meaning lower and lower profit made yearly. Because inflation rates are so high, customers buy fewer products. China Inflation can affect Tesco in china similarly to the way it affects Tesco in the U.K., china has a lower inflation rate than in the U.K. this means that Tesco can buy more stock and products and sell them at a cheaper price; this is good as they will have an increase in profit. Due to the fact that inflation is so low in china, Tesco can buy more products and customers can spend more money.

How interest rates affect Tesco in the U.K. and China

Tharshan Interest rate can affect Tesco in both china and the U.K. in many ways, customers play a huge role in this cycle; reason being, if interest rates are high, the cost of loaning money will be high; this means customers will have less money as they will be paying high cost for mortgages ECT. If customers have less money to spend in Tesco then there sales will go down because customers cant afford to spend a lot of money. From an business point of view, the inflation rate can affect Tesco in many way as it can make it more hard for them to expand the business. How GDP (Groce Domestic Power) affects the sale of Tesco If the GDP is high that means the country itself is wealthy, if you split the GDP between the GDPPC the results would show that the country (china) is not as wealthy as other country (U.K.); the U.K. is wealthier because the GDPPC is at a low amount. If the GDP is high Tesco can get products for cheaper and sell them for a fair price, depending on the GDPC (GROCE DOMESTIC POWER PER CAPITA) customers can buy more products for less than other individuals. China economic condition Some economic forecasters project that China will overtake the United States as the worlds largest economy within a few years, although U.S. per capita GDP levels are expected to remain much larger than that of China for many years to come. However, the ability of China to maintain a rapidly growing economy in the long run will depend largely on the ability of the Chinese government to implement comprehensive economic reforms that more quickly hasten Chinas transition to a free market economy; rebalance the Chinese economy by making consumer demand, rather than exporting and fixed investment, the main engine of economic growth; and boosting productivity and innovation. China faces numerous other challenges as well that could affect its future economic growth, such as widespread pollution, growing income disparities, an undeveloped social safety net, and extensive involvement of the state in the economy. The Chinese government has acknowledged that its current economic growth model needs to be altered. In October 2006, the Chinese government formally outlined a goal of building a harmonious socialist society by taking steps (by 2020) to lessen income inequality, improve the rule of law, enhance environmental protection, reduce corruption, and improve the countrys social safety net (such as expanding health care and pension coverage to rural areas). In addition, the government announced plans to rebalance the economy and boost innovation.