UK Economy – Powerful and stable practices being the key drivers!
Post the Industrial Revolution the UK economy has prospered to be one of the world’s superpowers, with only America to challenge them. As of today, the United Kingdom is the sixth largest economy in the world in terms of PPP (Purchasing Power Parity) and fifth largest in terms of GDP (Gross Domestic Product).
The economies of England, Scotland, Wales and Ireland make up the economy of the United Kingdom. The UK economy is home to some of the most prestigious names in the banking sector. You would find the head offices of banking heavyweights like Lloyd’s TSB, HSBC, Bank of England, all a part of the UK Economy.
UK is also known as a tourist-friendly state. Successive governments have laid on a lot of emphasis on tourism boosting their revenues in a big way. London, for example is very popular amongst visitors. In 2006, about 16 Million people visited this country. In the process, London achieved the record of being the most visited city in the world!
The manufacturing sector was once at the forefront of the UK Economy. After the world wars, the service sector started carrying the flag of the UK Economy. Except for the British automobile industry with heavyweights like Rolls Royce, all other sub domains of the manufacturing sector have diminished in their contribution to the economy.
The performance of the companies in the service sector powers the UK Economy ahead. The UK though seems to be facing an imminent problem with their natural gas reserves. With talks of global warming and switching to alternative energy sources, UK must take immediate steps to ensure that Energy demands are met. The situation is even scarier with coal reserves being at bare minimum.
Off late, the UK Economy has seen some dark days due to their exposure to mortgage finance in the USA. This has caused a lot of banks to write down assets. After a dismal performance in the first two quarters of 2008, it may be fair to say that UK is heading towards recession.