The United Kingdom Economic Review
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United Kingdom’s economy has got affected badly due to global economic crisis of 2008. This nation has experienced a contraction in its gross domestic product, and is trying to stop its economy from entering into a recession. UK economic review indicates that this nation’s economy may have to go through severe pressure in 2009.
Contraction of UK GDP
United Kingdom’s economy has got affected badly due to global economic crisis of 2008. This nation has experienced a contraction in its gross domestic product, and is trying to stop its economy from entering into a recession. UK economic review indicates that this nation’s economy may have to go through severe pressure in 2009.
Contraction of UK GDP
UK GDP experienced a contraction of about 0.6 percent in 3rd quarter of 2008. Not since 1990. has United Kingdom gross domestic product contraction been as high as 0.6 percent. Reasons attributed to this sharp decline were lower spending by businesses and consumers in United Kingdom. Total gross domestic product of United Kingdom was around $19,000 billion in 2008, as per data released by EuroStat.
UK economic review of exports and imports
A quick review of total exports and imports of UK indicate that exports have been significantly affected due to global economic crisis. Total UK exports in 2007 was around $320 billion, which was nearly 10 percent less that previous year export figure. However, UK imports registered a growth of about 2 percent in 2007. Total UK imports amounted to around $451 billion in 2007.
UK economic growth predictions
International Monetary Fund predicted that UK economy is likely to grow by about 1.4 percent in 2008. They also predicted that economic growth of United Kingdom would be around 1.1 percent in 2009. Both these predictions are indicative of a bleak economic scenario for UK in near future.
UK economic review: strengths and weaknesses
UK economy’s areas of economic strength include low corporation taxes, rising public sector opportunities, and favorable conditions for businesses to generate funds. Weak areas for UK economy include high rate of inflation, and bad debts for UK banks. For United Kingdom to maintain a positive growth rate, it has to counter both these problems.
