Economic Performance Report: August Figures and Alignment with Sustainable Development Goals

This report analyses the United Kingdom’s economic performance for August, contextualising the data within the framework of the United Nations’ Sustainable Development Goals (SDGs). The economy registered a modest expansion of 0.1%, with varied performance across sectors indicating both progress and challenges in achieving sustainable and inclusive growth.

SDG 8: Decent Work and Economic Growth

The 0.1% GDP growth in August reflects a fragile step towards sustained economic growth. However, this follows a downwardly revised 0.1% contraction in July, resulting in a cumulative 0.3% rise over the three-month period. This sluggish pace presents challenges to achieving robust economic growth and creating decent work for all.

• Business Confidence: Analysts note that subdued demand, higher operating costs, and policy uncertainty are causing businesses to delay hiring and investment, directly impacting the creation of decent work opportunities.
• Productivity Revisions: Upward revisions to historical productivity and GDP data suggest a stronger underlying economic foundation than previously estimated. Growth since February 2020 is now calculated at 5.5%, which has positive implications for long-term economic resilience and growth trajectory.
• Household Impact: Despite growth, the Treasury acknowledges a sentiment of economic stagnation among the populace. Future policy, including potential interest rate cuts and budget measures, will be critical in easing pressure on household incomes and ensuring that economic growth is inclusive.

SDG 9: Industry, Innovation, and Infrastructure

Sector-specific performance highlights the importance of a resilient and innovative industrial base for sustainable development.

1. Manufacturing Sector: The manufacturing industry was a key driver of growth, expanding by 0.7% and reversing a previous decline. This was significantly lifted by the pharmaceutical sector, showcasing the role of high-value, innovative industries in economic progress.
2. Construction Sector: The construction sector contracted by 0.3%, with a decline in maintenance and repair work. This underscores the challenges in infrastructure development. However, a 0.5% increase in new building work and the government’s stated aim to “get Britain building” signal a policy focus on strengthening infrastructure, a core target of SDG 9.

SDG 3: Good Health and Well-being

The report from the Office for National Statistics explicitly identified a strong performance by the health sector as a significant contributor to the month’s economic expansion. This direct link between the health industry’s activity and national GDP growth demonstrates the critical role of investment in health systems not only for ensuring well-being (SDG 3) but also as a pillar of a stable and productive economy (SDG 8).

SDG 17: Partnerships for the Goals

The UK’s economic outlook is intrinsically linked to the global economic environment, highlighting the need for stable global partnerships.

• Global Trade: International trade disputes continue to create uncertainty in financial markets, potentially impacting the UK’s path to stable growth.
• International Standing: Projections from the International Monetary Fund place the UK as the second-fastest growing economy in the G7 this year, indicating a relatively strong position within global partnerships. Maintaining this requires navigating global economic headwinds and fostering stable trade relationships.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 8: Decent Work and Economic Growth

   • The article’s primary focus is on the UK’s economic performance, including GDP growth, sectoral contributions, and productivity. This directly aligns with the goal of promoting sustained, inclusive, and sustainable economic growth.

2. SDG 9: Industry, Innovation and Infrastructure

   • The article specifically discusses the performance of the manufacturing, pharmaceutical, and construction sectors. It also mentions government plans for “investing in infrastructure,” which are central themes of SDG 9.

3. SDG 17: Partnerships for the Goals

   • The article touches upon the global economic environment by mentioning a “spat between Donald Trump and Beijing over tariffs” and the resulting “uncertainty on international financial markets about the likely path of global trade,” which relates to the goal of strengthening global partnerships for sustainable development, particularly in trade.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 8: Decent Work and Economic Growth

   • Target 8.1: Sustain per capita economic growth. The entire article is a report on the UK’s economic growth, citing figures like the “UK economy expanded by 0.1% in August” and its status as the “second-fastest growing economy in the G7 group this year.”
   • Target 8.2: Achieve higher levels of economic productivity. The article explicitly mentions that “the UK’s productivity – which measures the output per worker in a period of time – had been higher over recent years than previously estimated,” directly connecting to this target.

2. SDG 9: Industry, Innovation and Infrastructure

   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure. This is identified through the Treasury’s stated intention of “investing in infrastructure and cutting red tape to get Britain building” and the report on the construction sector’s activity.
   • Target 9.2: Promote inclusive and sustainable industrialization. The article’s analysis of the manufacturing sector’s performance, noting it “reversed a 1.1% fall in July to grow by 0.7% in August,” reflects this target’s focus on industrial activity as a component of the economy.

3. SDG 17: Partnerships for the Goals

   • Target 17.10: Promote a universal, rules-based, open, non-discriminatory and equitable multilateral trading system. The article implies the importance of this target by highlighting the negative impact of trade disputes, such as the “spat between Donald Trump and Beijing over tariffs,” which creates “uncertainty on international financial markets about the likely path of global trade.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. SDG 8: Decent Work and Economic Growth

   • Indicator 8.1.1: Annual growth rate of real GDP per capita. The article is replete with data points that measure this, including the “0.1% in August” expansion, the “0.3%” rise in output over three months, and the revised “5.5%” growth since February 2020.
   • Indicator 8.2.1: Annual growth rate of real GDP per employed person. This is directly implied by the discussion on productivity, which the article defines as “the output per worker in a period of time.” The finding that productivity “had been higher over recent years than previously estimated” serves as a qualitative measure for this indicator.

2. SDG 9: Industry, Innovation and Infrastructure

   • Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita. The article provides data points that contribute to this indicator by stating that a “boost from the manufacturing sector helped the economy improve” and that the industry grew by “0.7% in August.”

3. SDG 17: Partnerships for the Goals

   • The article does not mention specific quantitative indicators for this goal. However, it provides a qualitative assessment by describing how tariff disputes create “uncertainty on international financial markets,” which can be seen as a negative indicator for the stability and openness of the global trading system.

4. Table of SDGs, Targets, and Indicators

Source: theguardian.com