UK Economic Analysis: Recovering Well From Crisis
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UK, one of Europe’s largest economies, has been affected by global economic crisis. Gross domestic product growth predictions for United Kingdom, made by famous organizations such as International Monetary Fund and Bank of England, indicate that UK has been feeling some heat generated by global economic meltdown. UK economic analysis presents a more clear picture of what lies ahead for United Kingdom.
Growth predictions
UK, one of Europe’s largest economies, has been affected by global economic crisis. Gross domestic product growth predictions for United Kingdom, made by famous organizations such as International Monetary Fund and Bank of England, indicate that UK has been feeling some heat generated by global economic meltdown. UK economic analysis presents a more clear picture of what lies ahead for United Kingdom.
Growth predictions
International Monetary Fund’s UK economic analysis indicates that growth in United Kingdom would be around 1.4 percent in 2008 and about 1.1 percent in 2009. International Monetary Fund(IMF) had earlier predicted a 1.8 percent growth in 2008 and 1.7 percent growth in 2009 for United Kingdom.
UK trade
Export figures for UK saw a decline of 10 percent in 2007 and stood at around $320 billion. But exports to non-European Union countries registered an increase of about one percent. UK imports increased by nearly 2.5 percent in 2007, which also included a 2 percent increase in imports from non-European countries.
Rising inflation
Inflation has become another significant problem that is affecting UK economy. In November 2008, inflation rate in United Kingdom was around 4.1 percent. But IMF expects inflation rate to reach UK government’s expectations by 2010.
UK economic analysis: Strengths and weaknesses
Companies and businesses in UK benefit a lot from prevailing, low corporation taxes. Funding opportunities for businesses in UK are also on rise. Public sector opportunities for private businesses in United Kingdom are also increasing.
In addition to high inflation, high unemployment rate continues to be a major domestic challenge for UK economy. Economic slowdown has also led to insolvencies of several UK company. Banks, though registering profits, have been badly hit by bad debts. Sustained economic growth of UK depends on what measures its government adopts in near future.
