UKs Economy in Europe Essay -- Economics Economy England United Essay

UKs Economy in EuropeWhen one talks about a conceptive economy, a few key economic indicatorswill get mentioned pretentiousness, unemployment and economic growth. Theseare considered the three main macroeconomic indicators of any economy.To define a hale economy in the simplest form you must have a lowrate of inflation, low unemployment and steady economic growth. Duringthis essay there will be comparisons between other European countries(e.g. France, Germany, Luxemburg, Belgium, Spain, Italy) and theseeconomic indictors mentioned as well as others.We will start to look at inflation rates. The British economy hasslowed everyplace the past 12 months, but remains among the healthyest in thedeveloped world, a report has said (BBC News Online). Last month theUnderlying rate of inflation in the UK remained unchanged at 2.3%,which is below the governments target rate of 2.5%, this is good forthe economy. The headline rate of inflation, which includes mortgageinterest payments, fell la st month by 0.4% to 1.7%. These framings showthe rate at which prices are increasing. When we compare the UKsannual inflation figure of 1.2% to that of Germany and France (-0.6%in October), which is around the 2% mark, it seems that our rate isquite low and and then good for our economy. The Eurozone inflationis expected to be 2.1% this is measured by the Monetary Union Indexof Consumer Prices (MUICP). By looking at this we can see that thisfigure is very close to the UKs inflation rate. On the wholeinflation in the UK is at a disappoint rate than that of its Europeanneighbours, which is an indicator of a strong economy.When we look at unemployment in the UK we can see that it is around900,000 or 2.3%. This is the lowest it has been since the 1970s andis at a lower percentage rate than Japan and the USA. Germany who has latterly announced that they have just entered a recession has a veryhigh rate of unemployment at around 8.0% and France, Finland and Spaineven higher. The UK, N etherlands and Luxemburg are amongst the lowestunemployment rates in Europe. Unemployment is up again in France andGermany, in a sign that the eurozones two biggest economies are stillin the grip of a downswing (BBC News Online). France and Germany havethe largest economies in Europe and recent figures show thatunemployment increased by 15,000 a... ...ong performance is reflected by such indicators as solid growth andforecasts for following year predicting an annual growth of 2.75% - 3.75%.Inflation currently at 2.3% is lower than forecasted which is a strongindicator for a strong economy. Our unemployment is at the lowest ithas been since the 1970s and lower than that of the two biggesteconomies in the world at present at 2.3% or around 900,000. Interestrates are remaining unchanged at 4%, which is low, and the reason forthe British economy having a firm housing market. The UKs maineconomic problem is the manufacturing output. It could be argued thatthis sector of the economy is in recession afterward figures of negativegrowth in the last two quarters. As a result of this the UK issuffering from an all time high trade deficit, which is also receivable tothe high value of the pound. But overall the UK economy is in a goodstate taking into advantage the global economic slowdown which is issue on around it.Referenceswww.bbc.co.ukSources www.bbc.co.uk www.bized.ac.uk www.europa.eu.int www.ukonline.gov.uk The Daily Mail Newspaper The Business Environment - Brooks/Weatherston