Impact of Recession on UK Economy - Essay Example

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Impact of Recession on UK Economy

It was around that time when the government realised the seriousness of the issue. There are indications that things might be looking up, as we move along with the range of stimulus packages. The unemployment rate in UK experienced a dip of 0.1 percent and it stood at 7.8 percent in January 2010. But this figure is till 1.6 percent higher than that of last year, which makes thinks worrisome for the government (HRM Guide, 2010). Official figures indicate that the average earnings in UK have certainly bounced back in the recent past.1
Fig-1 indicates that there are indeed some recovery signals in the economy, as the earning potential of an average Briton is coming back to the comfortable zone. What could be of some concern however is, the falling graph of earnings in the later part of 2009. Monk (2009) also cites the October 2009 figures from the Office for National Statistics to highlight the higher number of borrowings in UK. The figure stood at 11.4bn in October, far higher than the forecast figure of 7.1bn. The consistent increase of net debt as a percentage of the GDP over the last couple of years has made UK economy more of a debt economy. OCED has also issued warnings to the effect that UK needs to put in place its fiscal measures to unburden itself from the pile of debt. ...Show more

Summary

Recession in UK has travelled down from the failure of banks in US. The cascading effects of globalisation have made almost all major economies around the world vulnerable to the recessionary trends. The result of all this is the debt of financial sector has risen sharply from (Calbreath, 2008)…
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Impact of Recession on UK Economy essay example
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