Britain was the first country to start the industrial revolution in the 18th century. * In 19th century the period of British Empire, UK had the strongest economy in the world. Much of the profit was brought by its trade system which transported resources, people and capital. Due to large war expenditure during the Second World War along with end of British Empire caused a great decline in United Kingdom’s economy. * Britain began its market economy about 300 years ago. * In 1979, the situation started reverting by the advent of Prime Minister Margaret Thatcher.
He helped UK to get rid of its “sick man of Europe” or simply the economic difficulty by breaking the existing unions and shredding them in the free market. * The 1990 recession had adversely affected the United Kingdom’s economy. There was 8% decline in the UK’s economy with increased unemployment. But this situation has got reverted in 1993 when the recession ended. * Britain is a capitalist country. * The characteristic of the economic system of capitalism is that it protects private enterprise.
* Britain is a trading nation. (Why? ) In Britain, the domestic market is limited.
So, it has to find more markets outside the country. It has to find more markets in the world. * Eg. Each year Britain exports some one-third of its gross domestic product. It is the fourth largest exporter in the world. Its exports account for about 5% of the world’s total trade volume. * Export goods: Manufactured goods, sup, chemicals; food, beverages, tobacco * Main export partners: Germany 11. 6%, US 10. 6%, Netherlands 8. 4%, France 7. 8%, Republic of Ireland 6. 4%, Belgium 5. 7% (2011) * Britain is also one of the world’s largest importers. Because Britain lacks raw materials, or we may say its home supply of raw materials is inadequate, Britain has to buy up a large proportion of the raw materials sold in the world market. Britain’s major trading partners are industrialized countries. * Import goods: Manufactured goods, machinery, fuels; foodstuffs * Main import partners: Germany 13. 2%, China 8. 7%, Netherlands 7. 5, US 6. 1%, France 6%, Norway 5%, Belgium 5% (2011) Public debt| ? 977 billion 88. 7% of GDP (2012 est. ) CZ 284 RO 275| | | Currency| Pound sterling (GBP)|
Fiscal year| 6 April – 5 April (for other countries calendar year)| Average gross salary| €4,108 / $5,546, monthly (2006)| Average net salary| €2,749 / $3,712, monthly (2006)| Recent Economic Details of UK As per the report of Office of National Statistics, UK was hit by recession during the second quarter of 2008. There was a 30 % decline in the value of United Kingdom’s currency Pound Sterling compared to other main currencies. There was a great increase in the number of unemployment. In 2009 the United Kingdom’s economy started declining further which had adversely affected all sectors including real estate, manufacturing, employment etc.
The Gross Primary Parite of UK was found to have declined by 2. 4% in the first quarter of 2009. During second quater of 2009, there was a 0. 6% decline seen in the Gross Primary Parity of UK which then followed a 0. 2% decline in the next quarter. In the first quarter of 2010, the economy had grown by 0. 3%, in the second quarter there was further improvement with a growth rate of 0. 7%. As per the prediction of Office of National Statistics (ONS), an increase in GDP by 1. 6 % is expected in UK. Economic Sectors of UK The important economic sectors of UK are: as for 2010.
Economic Sectors of UK – Industries: * The agricultural industry is one of the most important industries in UK. The agricultural sector of UK is highly developed. The agricultural practices are highly mechanized and according to European standard. The UK’s agricultural sector is able to provide about 60 % of its food needs. There are around 535,000 employers engaged in this sector which forms around 1. 6 % of the UK’s work force. * The fishing industry is also much importance. The major fishing areas includes Fleetwood, Peter head,Kingston upon Hull etc. mportance fishes available here are sole, herring, salmon etc. Economics Sectors of UK – Production * Manufacturing industries: The manufacturing industries contribute about 16% towards UK’s economy. This sector is also able to provide about 13% of United Kingdoms employment. The most important manufacturing industries of United Kingdom includes electrical and paper products, textile, food products, chemicals, automation equipments, electronics, metals, cement, coal, paper transport industries which includes aircraft building, ship building, train, motor vehicles etc. Electricity, gas and water supply: The Gas, electricity, and water supply is of very much importance inUnited Kingdom’s economy. In 2004 it was reported that electricity, gas and water supply has provided an estimated amount of ? 17,103 million towards United Kingdom’s economy. * Mining: Mining has contributed a lot towards the UK’s economy. The most important among this is the coal mining. In 2004, it was estimated that mining contributed about ? 21,876 millions towards the United Kingdom’s economy * Construction: The construction sector of United Kingdom is of much importance. he construction alone had added about? 64,747 millions towards the UK’s economy. Economics Sectors of UK – Service Sector * Trade: The trade includes both wholesale and retail. The United Kingdom had a good export as well as import service. United Kingdom’s trade had brought about ? 127,520 millions towards its economy. * Transport and Storage: The transport and storage sectors have together contributed about ? 49,516 millions in 2004 towards the UK’s economy. * Communication department: In 2004, the various communication sectors of United Kingdom have provided about ? 29,762 millions towards its economy. Real estate: There was a great increase in the property price from 2001 – 2007. The real estate alone accounted for about ? 175,333 millions towards UK’s economy. * Other service sectors: Other most important service sectors which contributed a lot towards UK’s economy are defense, education, health and social work, Hotels and Restaurants etc. Also is good to know that the aerospace industry of the UK is the second national aerospace industry in the world. UK pharmaceutical industry has the third-highest share of global pharmaceutical R&D expenditures (after the United States and Japan).
The British economy is boosted by North Sea oil and gas reserves, valued at an estimated ? 250 billion in 2010. Britain’s economic growth will be the bigger than any other European country over the next couple of years, as parts of the Continent face “social breakdown”, according to a think–tank. Predicting that recession would continue in the eurozone in 2013, with only marginal growth in 2014, the Centre for Economics and Business Research said Britain would grow by 1. 4pc. Germany, Europe’s largest and most powerful economy, is expected to grow by 1. 2pc in 2014, while France is expected to grow by 0. 2pc, according to the CEBR.
Cite this Current Economic Situation in the United Kingdom
Current Economic Situation in the United Kingdom. (2016, Oct 15). Retrieved from https://graduateway.com/current-economic-situation-in-the-united-kingdom/