Comparing UK and Japan's Real GDP Growth (1875-2023) with Linear and Ratio Scales
Figure 3.8a presents the total real GDP for the UK and Japan from 1875 to 2023, using two distinct vertical scales to analyze the economies' size and year-to-year changes. The top panel, with a linear scale, effectively shows the enormous long-term increase in real GDP but also highlights significant downturns, such as those following the Second World War and during the COVID-19 pandemic. The bottom panel utilizes a ratio scale, which is superior for comparing growth rates across different periods. On this scale, the slope of the line directly corresponds to the growth rate, meaning a constant growth rate would appear as a straight line. This makes it easier to visually assess and compare the economic performance of the two countries over time.
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Comparing UK and Japan's Real GDP Growth (1875-2023) with Linear and Ratio Scales