Economy of the United Kingdom
Presently UK’s economy encompasses those of its home nations – England, Scotland, Wales and Northern Ireland. The Isle of Man and the Channel Isles are also considered to be part of the British Isles but have offshore banking statuses. As a member of the EU, the UK is part of a single market that ensures the free movement of people, goods, services, and capital within member states. Nevertheless, the UK still maintains its own economy and has chosen to continue using the Pound Sterling as its national currency rather than converting to the Euro. By the 1880s, The British economy was dominant in the world, producing one third of the world’s manufactured goods, half its coal and iron, and half its cotton. But by 1900, the UK has been overtaken by both the United States and Germany. The Second Industrial Revolution in the United States meant the US had begun to challenge Britain’s role as the leader of the global economy. The extensive war efforts of both World Wars in the 20th century and the dismantlement of the British Empire also weakened the UK economy in global terms, and by that time Britain had been superseded by the United States as the chief player in the global economy. From 1945 until the present, the story of the UK economy is usually thought of as one of decline. Facts showing the uk economy’s relative decline:
* Britain is a lot more wealthier and more productive when it was in 1945; * However, other countries have improved more rapidly, and the UK slide from being the 2nd largest economies to being the 6th. Today, the UK economy faces another struggle to recover from the 2008 financial crisis. Presently, the recovery effort has been sluggish. Although global economic prospects appear to be improving, economic forecasts for the UK have been fairly negative. In April 2011, The IMF slashed its 2011 growth forecast for UK’s economy to 1.75 percent, its third...