The Economy Of Uk Essay

2897 words - 12 pages

The United Kingdom has the seventh-largest economy in the world, has the second-largest economy in the European Union, and is a major international trading power. A highly developed, diversified, market-based economy with extensive social welfare services provides most residents with a high standard of living.
The UK joined the European Economic Community (now known as the EU) in January 1973 and it is a founder member of the World Trade Organization. The United Kingdom is one of the world’s leading advanced economies. And it is the second biggest exporter of services in the global economy and ranked eighth in global exports of goods.
The United Kingdom is the world's fifth-largest ...view middle of the document...

The Labor government has continued the privatization policy of its Conservative predecessor, particularly by encouraging "public-private partnerships" (partial privatization) in such areas as the London Underground.
There have been two recessions in the last twenty-five years in UK. The early 1980s downturn was a deep recession – the worst downturn in the UK’s post-war history. We can see the descent into recession in 1990 and 1991 and then a recovery which was maintained throughout the remainder of the 1990s. Further positive rates of growth have been sustained in the first six years of the current decade, allowing the UK economy to claim one of the longest periods of expansion in our modern history. After a slowdown in 2005 the British economy looked to be enjoying stronger growth in the first half of 2006.
From 1989 until 2010, the average inflation rate in United Kingdom was 2.72 percent reaching an historical high of 8.50 percent in April of 1991 and a record low of 0.50 percent in May of 2000. From 1971 until 2010 the United Kingdom's Unemployment Rate averaged 7.22 percent reaching an historical high of 11.90 percent in April of 1984 and a record low of 3.40 percent in December of 1973.
As a leading international financial center, London’s financial exports contribute greatly to the United Kingdom’s gross domestic product and will continue to do so. And the service industries account for 75 percent of the U.K.'s economic output, according to the CIA. Industry accounts for 23.8 percent of output while agriculture represents 1.2 percent. Overall, the United Kingdom's mixed economy has mostly free market features but retains some socialist characteristics, such as the government owning a stake in some industries.
The first problem of the economy of UK is that it has a high national debt. The UK national debt is the total amount of money the British government owes to the private sector and other purchasers of UK gilts. And the cost of National debt is the interest the government has to pay on the bonds and gilts it sells. UK public sector net debt in March 2012 was £1022.5 billion, equivalent to 66.0 per cent of GDP – (note this excludes financial sector intervention.) If all financial sector intervention is included (e.g. Royal Bank of Scotland, Lloyds), the Net debt was £2311.6 billion (147.3 per cent of GDP). This is known as the unadjusted measure of public sector net debt.
After a period of financial restraint, National debt fell to 29% of GDP by 2002. Then, national debt increased from 30% in 2002 to 37 % in 2007. This was despite the long period of economic expansion; it was primarily due to the government’s decision to increase spending on health and education. There has also been a marked rise in social security spending. Since 2008, National Debt has increased sharply because of three reasons. The first, economics recession (lower tax receipts, higher spending on unemployment benefits) the recession particularly hit stamp...

Other assignments on The Economy Of Uk

Role Of Marketing Boards In Kenya To The Economy

1306 words - 6 pages . Consumers think of price stabilization as imposing minimum prices rather than both maxima and minima. It is often assumed without discussion or evidence that price stabilization benefits the farmer and is beneficial to the economy. Role of marketing boards: 1. To provide price stability, marketing boards set the prices for farmers. During a season of high prices in the world market, they stash funds over and above the set local target, which they

Think Of The Economy As Being More Like A Cat Than A Washing Machine

480 words - 2 pages Rule 1: Think of the economy as being more like a cat than a washing machine. We are victims of the post-Enlightenment view that the world functions like a sophisticated machine, to be understood like a textbook engineering problem and run by wonks. In other words, like a home appliance, not like the human body. If this were so, our institutions would have no self-healing properties and would need someone to run and micromanage them, to protect

The Uk Currently Has A Budget Deficit Of £80bn. It Is Forecast To Fall To £0 Over The Next 5 Years. Discuss Whether The Uk Government Should Either Raise Taxes Or Cut Government Spending To Ensure...

1302 words - 6 pages countries, such as the UK, is too big. As the public sector is less profit-centric, their allocation of resources is less efficient and they are known to be less productive and efficient than the private sector therefore reducing public expenditure it means there will be less waste and inefficiency in the economy. Moreover, resources will be more efficiently allocated, so there will be greater output and economic growth, enabling the economy’s ability

Automobile Industry In Uk

1134 words - 5 pages . * Automobile sector also contributes in the net value addition to the economy by around £12bn each year. * Automobile industry in UK exports almost 70% of its production hence contributing for more than 10% of total exports by UK. With increased sale of premium products to markets such as China and the US helped in lifting the overall sectors performance. About 50 % of its total export is to European Union and remaining in about 100 different

How Would You Explain A Simultaneous Rise In Unemployment And Prices In An Economy?

2598 words - 11 pages Y2. These rises in costs have threatened global economic recovery (Cohen, 2011) because of this loss in output. In January 2011 unemployment in the UK was 2.53 million, 8% of the workforce, which implies worrying times for job seekers now and in years to come. When stagflation occurred in the 1970’s and unemployment began to rise this was due to the slump in manufacturing sectors in the British economy. Unemployment in the UK is currently so


621 words - 3 pages P2 identify how government policies impact on a selected business. Government policy The government produces a set of policies that are used to develop and influence the UK economy. These policies are: Economic Policy This policy is mainly focused to deal with economic growth, unemployment and inflation. Cadbury may have an effect through inflation as inflation means a general sustained increase in price. This could affect them most out

Journey To Success

299 words - 2 pages actually insure and explain the general operations of the system. Lastly I will state the current views of Flood Re, stating whether or not Flood Re is actually useful and whether or not the UK need it. In addition I will analyse the impacts it has on the UK economy (i.e. high economic costs of over £4bn)

Barclay Time Line

889 words - 4 pages vivid contrast with a British bank’s typical returns on ROE being 15% 2002 With a slowing economy transaction volume grew by 8% while bad debit charges grew by 8% credit card managers had to find customers who needed roll over credit but will not default on repayments this was crucial to their strategy 2003 9 million cards issued in the UK alone Barclaycard had 27% of the total credit market its nearest rival Lloyds TSB, only had 5 million

House Prices In The Uk

1011 words - 5 pages homebuyers as the unemployment rate will decrease and therefore people will feel more confident and may be choose to buy a house. Lower interest rates combined with greater numbers of people with jobs can convince lenders to give more mortgage loans, increasing the number of homebuyers increasing demand and therefore price. Home owners in the UK make about 70% of the population. In this sense rising house prices will benefit the economy as the majority


655 words - 3 pages , globalization is likely to increase UK growth in the long term because aggregate demand (AD) is likely to increase through increased exports (X), and aggregate supply (AS) is likely to increase because of  higher levels of investment, both domestic and foreign direct investment (FDI). However, growth in the short term may become more unstable as the global economy becomes increasingly interconnected. The recent credit crunch is evidence that unstable growth

Clean Edge

1328 words - 6 pages General Information Product related information | Geographic segmentation | Country | United Kingdom is a developed country and has the world's sixth-largest economy by nominal GDP. The UK remains a great power with considerable economic, cultural, military, scientific and political influence internationally. Population UK:63,182,000 | The United Kingdom is a major consumer, but only a very minor producer of wine, with

Similar Documents

With Reference To Organisations Or Industries That You Know, To What Extend Do You Think That Recent Changes In The Uk Economy Will Have Inevitably Damaged The Long Term Profits Of Businesses That...

339 words - 2 pages With reference to organisations or industries that you know, to what extent do you think that recent changes in the UK economy will have inevitably damaged the long-term profits of businesses that operate in this country? Long-term profit is the amount of money a business makes (revenue minus costs) over a long term period. In this case it is referring to the profitability of a company and how much money it will be able to make in the future

Complexities Of The Us Economy Essay

563 words - 3 pages Complexities of the U.S. Financial System Professor Crawford Finance 100 10/28/2014 Complexities in the US Financial System The Federal Reserve System is the most powerful component of the US Economy. The Federal Reserve is made up of four components. There is a seven member Board of Governors that direct monetary policy. A 12 member Federal Open Market Committee (FMOC) that sets the target for the federal funds rate which

The Economic Impact Of Unemployment In The Uk

1771 words - 8 pages past years. The late managing an account emergency has highlighted numerous issues which have gotten to be territories of immense open deliberation and strategy change (Dolton, & O'Neill, 2002). As of late numerous financial variables in the UK economy have given a disheartening viewpoint, especially as they are not at levels which accomplish the legislature's macroeconomic goals. Then again, these monetary variables are generally subject to one

Business The Back Bone Of Economy

1125 words - 5 pages | Business | The Back Bone of Economy | | Amy Lopez | 11/4/2012 | [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] | Business is the back bone of any economy. It forms an economies foundation and without business your economy would be almost no