Economics

Economics

UK's Economic Performance over the Last 5 Years

UK has seen huge changes in its economy over the past sixty years. The country has seen several ups and downs. This part of assignment has discussed about the last five years. The current economic crisis has broken the temporary solutions which have ruled the world economy. Profits had been created through production but, in contradiction, were realised through circulation and exchange. British are now exceptionally vulnerable to the crisis. The business funding debate has become polarised around a perception that the banks are not lending. The UK banks insist that they are in fact totally open for business. This divergence is explainable through a number of factors; not least that business demand for loans is depressed by ongoing recession and an unwillingness to invest against very uncertain growth prospects. However, UK have always been dominating economic country, it is said to be one of the most powerful economic country. Its currency has rules almost every currency and has most stable currency. The recession of 2008 has hit the economy of UK, but now in 2012 it is in recovery phase.

Unemployment in UK

In January 2012, the unemployment rate was recorded at 8.4%. From the year 1971 to the year 2010 UK unemployment rate had average of 7.22 percent. In the UK the labour force is said to be the working people and those who are seeking to work. In the year 2012 the economists recorded up to 48000 unemployed people. In 2008 the unemployment rate of UK was 5.1%. In 2009 it increased to 6.8%. It further more increased in 2010 and reached to 7.9%. in the year 2011 it ended at 8.4% .

Balance of Payment

The balance of payment is said to be the maintained account that records the incoming and outgoing remittances for the import and exports goods, and at the end of the year it indicate positive or negative balance that provides how much the balance is negative or positive.

In 2008 the UK officially announced its recession and their GDP fall for 0.5%. 2010 was the complex year as the economy. It possessed high unemployment. 2009 was the worst year among the last five years the country had to face negative balance of payment and different economical problems. The UK faced trade deficit and depreciation in pound sterling. People started saving and do not spend.

Inflation

2008 was the year of inflation and disturbance. Till December 2009 the inflation reached to 1.9%. The oil prices reached its height, and because of the oil prices all the commodities went high. The inflation rate stood UK in September at 5.2% , representing the highest level of data since September 2008. The underlying price indicator that excludes the contribution of energy, food and alcohol and snuff, rose to 3.3% year two tenths above the figure for August, its highest level since May 2011 (3.7%). 3.6 percent (% change pa; av) consumer price inflation was in 2008, 2.2 in 2009, ...