ECONOMIC GROWTH

Economic Growth

Economic Growth

Introduction

The economy of the United Kingdom is a concept associated with the combined economies of countries including Northern Ireland, England, Scotland and Wales. The economy of the United Kingdom even after the recent economic depression stands as the World's Sixth Most Strongest economy if measured by the gauge of Gross Domestic Product (GDP), and considered to be the world's seventh strongest economy if looked upon through the perspective of Purchasing Power Parity (PPP). However, if we look upon in Europe, it is third strongest economy after France and Germany. However, if we measure in terms of Per capita income, United Kingdom finds its feet on the grounds of being the 20th strongest economy, and if gauged by Purchasing Power Parity (PPP) it stands as the 17th strongest economy. Other than the above mentioned facts United Kingdom is the active member of organizations like European Union (EU), International Monetary fund (IMF), World Trade Organization (WTO), World Back, United Nations, G7, G8 and G20. So United Kingdom does enjoy a considerable position in the world as far as the economic strength concerned. As per the requirements of this paper we would try to highlight some factors associated with United Kingdom's economy.

Risk Factors

This Section of the paper deals with the key factors which shape up the investors' confidence whether to invest in the country or not. It does not only cater to the foreign investor but also the local investor. Major Risk factors of the United Kingdom economy is as follows: Basic prices saw the rise in the last two decades which started to rise from 2.3 percent and went to the level of achieving the growth of 2.9percent by the end of a significant period. However among this factor, to rise, there were many other factors involved in it. Labour Hourly Input (Unadjusted) also saw the rise which went up from 0.3 percent to0.6 percent. Policies attached to it would be discussed further in the course of this paper. There are other factor too, which needs to, be highlighted before jumping on to the next factor. Output per person saw the rise as well and went from 1.9 percent to 2.2 percent, Capital Deeping also saw the rise and jumped from 0.6 percent to 0.7percent (www.niesr.ac.uk).

Competitive Environment

Competitive Environment translated in the context of this paper as Environment being competitive relating to the market. Competitive market is another decisive factor when measuring the growth of a country, primary reason being it is attractive for the local as well as the foreign investors. Competitive market tends to increase the strength of the economy as it provides the consumers to achieve the best possible product in the lowest possible price. The change, which United Kingdom, market saw in terms of Competitive market majorly been done by the end of 2002, and after that period, the market changed with insignificant effect failing to see any radical fall or rise as far as the competitive environment of the economy ...