The line graph illustrates the growth of the economy at 5-year intervals from 1995 to 2010. The pie charts show the breakdown of household expenditure over the same period. Seen together, there appears to a relation between economic growth and household expenditure.
The chart shows that economic growth began with a modest 1 percent. Since 1995, the growth remained stable and peaked at nearly 5 percent in 2005. But it dropped dramatically to -5 percent in 2008 and increased sharply thereafter.
At the same time, changes of pattern of spending were evident. In those intervals when there was low or negative growth, people spent more on things that are important such as housing and food. However, in periods of economic growth, those things less essential namely clothing, entertainment and travel are spent more than in other periods. For example, in 2005, when the economic growth peaked, three items together accounted for about 20 percent of total spending.
In conclusion, the figures show that the economic growth appears to cause the household expenditure.
The line graph illustrates the
growth
of the economy at 5-year intervals from 1995 to 2010. The pie charts
show
the breakdown of household expenditure over the same period.
Seen
together, there appears to a relation between
economic
growth
and household expenditure.
The chart
shows
that
economic
growth
began with a modest 1
percent
. Since 1995, the
growth
remained stable and peaked at
nearly
5
percent
in 2005.
But
it dropped
dramatically
to -5
percent
in 2008 and increased
sharply
thereafter.
At the same time,
changes
of pattern of spending were evident. In those intervals when there was low or
negative
growth
,
people
spent more on things that are
important
such as housing and food.
However
, in periods of
economic
growth
, those things less essential
namely
clothing, entertainment and travel
are spent
more than in other periods.
For example
, in 2005, when the
economic
growth
peaked, three items together accounted for about 20
percent
of total spending.
In conclusion
, the figures
show
that the
economic
growth
appears to cause the household expenditure.