subscribe: Posts | Comments

Current Economic Status of the United Kingdom

Comments Off on Current Economic Status of the United Kingdom
Current Economic Status of the United Kingdom

UK currently is has the fifth largest national income in the world. This is measured in terms of Gross Domestic Product. Also, it is the tenth largest in the world when it comes to Purchasing Power parity. It is one of the most globalized economy worldwide. The economy of United Kingdom comprises of England, Wales, Scotland and North Ireland. From 2013 till now, UK has been the fastest growing economy among the G7 members.

UK gross domestic product
The major contributor to the UK economy is the service sector. As per the recent statistics, it contributes approximately 78% of the Gross Domestic Product.
The government finances are still at a deficit of about 1.5 trillion Euros. This means that there is still a hefty debt burden in the UK. However, that even with an increasing deficit, the debt burden will be alleviated. This is as a result of the steady growth in the economy.
The inflation in England is currently negative. This might seem like a good thing, but it is a cause for alarm. Besides, deflations have been known to have negative effects in the economy. Particularly, it tends to delay spending by consumers and also may also lead to an increase in the debt burden.

Among the G7 members, UK since 2013 has been among the lowest in terms of the level of output per worker. This issue is due to the past recession. Productivity in this economy is still below the 2008 recession level.
Currently, more than 31 million people in the United Kingdom are employed. 78% of this being youth between the ages of 16 and 24. This is very impressive as it even beats the employment level in the United States. However, it still lags behind as compared to countries like Germany.
Since the recession in 2008, household incomes in the United Kingdom have been very low. However, in the recent years, they have started to shoot up although, not in the expected levels. Most of the household incomes are still 2.7 % lower compared to the economic period before the recession.

Comments are closed.

Recent Posts