The UK economy

The UK economy reached the peak since 2008. Thanks to the euro crisis which has affected more than 50 countries in 2008, the economy of the UK had dropped to the trough immediately during the period of 2008-2009. Not only the UK economy was affected, a lot of European countries were affected by it too. The UK government had realized this problem. So they have produced different policies to help their economy. In this essay, 5 economic indicators which are the Balance of Payment, currency exchange, inflation rate, unemployment rate as well as GDP will be used to evaluate the present status of the UK economy. Balance of Payment is a very useful indicator to indicate a country’s economy. It records the monetary transaction of a country including the import and export of a country as well as the investment income and the current transfer. According to the Office of National Statistics (ONS), the balance of payment in 2011 was -4 billion and -13 billion in 2013. It shows that the spending on importation is greater than the export of goods and services in the UK. The calculation of the balance of payment is export minus the import. When the balance of payment is deficit, it represents a bad economy. As too many imports exist in a country, it means the local industry is not being protected. Fewer people make purchases in the local companies. Boots, a company that sells health products, beauty products as well as daily necessities, sells approximately 30 cosmetics brand’s products. Among 65% of them are overseas’ brands. People will have a higher change to purchase overseas’ products and this will affect the local economy of a country.

The UK government recognized the problem caused by the Euro crisis and they have done something to help with the economy. From the current exchange rate, the exchange rate for GBP to Euro was ￡1 against €1.05 and ￡1 against €1.18 in the third quartile of 2009 and 2013. You can exchange more euro for one pound in 2013 than 2009 and