The Economy of the United Kingdom
The United Kingdom has the fifth-largest, national economy as measured by the nominal gross domestic product (GDP). It is the ninth-largest economy by the purchasing power parity (PPP), however, the nineteenth largest economy in comparison of the GDP per capita with the comprising of the 4% of the world GDP. The United Kingdom economy is the second-largest economy in the country or in the European Union, on the other hand, the United Kingdom according to the assessment of 2016, is known as the country with the third lowest unemployment rate, and the tenth largest for the goods exporter, moreover, as the fifth largest for the goods importer (OECD, 2011).
The United Kingdom is known for the fourth-largest, direct investment that is done in the inward foreign, the country has the globalized economies with the 78% of the GDP. The United Kingdom has the World’s largest of the global financial center. The major financial operations are carried out in the London; the country is generating good finance from the pharmaceutical industry because there are 500 largest companies in the country. The United Kingdom has invested in the pharmaceutical research in order to get the maximum benefits, thus, it has the third-highest share of worldwide transactions. The United Kingdom economy is also getting benefits from the natural resources, however, it was estimated that the country has the 2.9 billion barrels of the sea oil and the gas (Sharma, 2016).
According to the analysis, United Kingdom has the richest per capita areas, in the London’s economy and other largest city the country is getting the largest GDP in Europe. The currency of United Kingdom is the known as pound sterling. It is the most valued currencies because it is the ten most-appreciated currencies after the currencies like American dollar or the euro. Thus, it is the third-largest reserve currency as estimated by the countries of the currencies, the country is not facing the recession after Second World War. In the United Kingdom, there was not the major recession.
The OECD report said, in the years 1950s and 1960s there was the prosperity in the country, as estimated by the annual rate of growth. The companies there are indulge in the heavy industry and developing or manufacturing item, in order to make the strongest economies. The United Kingdom has the strongest economy, because there is less inflation, interest rates, and very less unemployment. The economy of the country was happy until the 2008–09 recessions. In the year 2008, the IMF focused on the UK economic outlook and notices the rising and increase in the commodity prices.
The United Kingdom is also exporting financial services to the countries and earning much from the goods and commodities. Therefore, in May 2008 UK government has focused on the fiscal policy in order to broaden up the scope for the internal and the external balance. The United Kingdom is focused on the foreseeable future and to shore up the economy, the United Kingdom currently has the better world capital and the better foreign exchange trading because it is known as the third-largest economy major in the retail center. It was estimated that United Kingdom has the high-street retail was about 33% and the consumer spending that was estimated was about 20% of the GDP.
The United Kingdom is facing the serious issues of the transport problems, as there could be the increase in tension by 2025, therefore, the government of United Kingdom focused and investing on the road pricing and expansions so that the transport network can be enhanced in the UK cities (Beyer, 2015).
You may also study:
- Beyer, S. (2015, November 23). Can Los Angeles Solve Its Traffic Problem By Building More Roads? Retrieved May 16, 2017, from https://www.forbes.com/sites/scottbeyer/2015/11/23/can-los-angeles-solve-its-traffic-problem-by-building-more-roads/#78003fec234d
- OECD. (2011). OECD Economic Surveys: United Kingdom. OECD Publishing.
- Sharma, G. (2016, 31 January). Oil Slump Prompts UK Scramble To Support North Sea Exploration. Retrieved May 16, 2017, from https://www.forbes.com/sites/gauravsharma/2016/01/31/oil-slump-prompts-uk-scramble-to-support-north-sea-exploration/#5d7e819f37bf