StudentShare solutions
Triangle menu

Impact of Recession on UK Economy - Essay Example

Nobody downloaded yet

Extract of sample
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. It was predicted by some analysts in 2008, when the initial signals of recession started emerging that during the coming two years UK economy would be experiencing its weakest patch of the last 15 years (BBC, 2008). Well, if trace the journey of the recession, these concerns seems to have come true.

Taking a historical perspective UK had a population of 38 million with GDP of just under 125 billion at constant 1995 market prices. By the end of the century, the population stood at 59 million with an increase of more than 50 per cent while the GDP stood at 800 billion, registering a fivefold increase (Lindsay, 2003). The benefits of globalisation seem to have percolated down to all sections of the society in good measure. The office of national statistics indicated that the unemployment rate in UK in 1900 stood around 5 percent. During the difficult times of 1930s the unemployment rates peaked to around 22 percent, but subsequently as a result of successful implementation of globalisation policies, once again the unemployment rates were below 5 below by the end of 20th century. Recessionary trends have once again brought back focus on the rising unemployment rate The latest figures from the office of national statistics2 indicate that the unemployment rate increased by 0.1 percent points to 7.8 per cent for July to September 2009.

It is worthwhile here to mention that the unemployment rate started increasing particularly around the last quarter of 2007 when recession started showing its impact on economies all over the world. It is therefore quite apparent that while the economies benefitted immensely during the booming days of globalisation, it felt the pinch when the negative trends from other countries started impacting the economic indicators of UK as well.

Over the years, UK has been able to develop into major global force, primarily due to its rapid economic development, which has helped the country in advancing particularly after the second world-war. Strong democratic setup and stability of government coupled with continuity in economic policies are considered as the strong points of the country. The ...Show more


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)…
Author : christian30
Impact of Recession on UK Economy essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Impact of Recession on UK Economy"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

UK economy during 2008 recession
The rapid increase in production costs due to higher costs of doing business resulted in inflation; thereby reducing consumer purchasing power and real incomes. For instance, the consumers sharply cut down their spending amid low real incomes, which led to negative GDP growth, aggregate consumption, production and saving (BBC Article, 2008).
4 pages (1000 words) Essay
Examine the impact of the recent recession in the British Economy
This economic crisis which reached peak in 2008 had shaken the foundation of UK economy in a destructive manner. The recession introduced instability in all sectors of British economy and was hardly hit on the banking and housing sector. According to (The Economist)“The economy of UK shrank by 5% last year, this was biggest fall since the Great Depression.
6 pages (1500 words) Essay
Recession in UK
Several macroeconomic indicators change mostly in the same way. Apart from change in employment status, other changes that take place involve changes in capacity utilization, investment spending, business profits, household incomes and inflation. All these fall during this period.
5 pages (1250 words) Essay
The Recession in the UK
The result of all this is the debt of financial sector has risen sharply from (Calbreath, 2008). It now stands at 74 percent higher than it was in 2000 and 10 times higher than in 1980. As a result of globalisation the indicators in UK economy too have been dependent on cues from US markets.
4 pages (1000 words) Essay
The impact of the recession on employee motivation factors in the hospitality industry, particularly in the hotel sector: A case study of Marriott hotels in the UK
The economy was in shambles. The global economy was affected as the US economy is one of the most influential economies of the world. The effects of the recession were widespread and varied in the business sectors around the world. The US economy was hit by severe job
24 pages (6000 words) Essay
Is the UK economy out of recession
According to National Bureau of Economic Research (NBER), recession is a “significant decline in economic activity lasting more than a few months” (Recession Org website). However, a general view about regression
8 pages (2000 words) Essay
Is the UK economy out of recession
on the GDP numbers for the years 2008 and 2009, one learns that “the economy contracted even more sharply than previously thought in the first quarter of 2009: 2.4 per cent compared to the preliminary estimate of a 1.9 per cent contraction.” (Lynch, 2009) The promising
8 pages (2000 words) Essay
Is the UK economy out of recession
More importantly, the process of recovering from this economic slump had been long and painful. United Kingdom (UK) has been a booming economy and it had remained buoyant for the
8 pages (2000 words) Essay
Analyse the reasons for the recent UK recession and its impact on one particular leisure market. E.g. travel, restaurants, tourism
cluding a decrease in factory productions, people purchasing less goods, high rise in unemployment, an unhealthy stock or a sudden drop in the personal wages of workers leading to a scarcity of choice, and opportunity costs. A recession comes bearing grieve consequences since
8 pages (2000 words) Essay
Most declines have been trivial in the regional and national levels, with the exception of a few serious cases like the East Asian crisis of 1997 (Radelet and Sachs, 1998). It triggered short and long standing effects in nations,
6 pages (1500 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment