Uk Economy Trend and Retail Market Situation

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Submitted By Marianna80
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UK economy trend and retail market situation

Distinctive feature of economic life in the UK at present time is a financial and economic crisis and its consequences, which took a severe stroke to banking system. Problems in the financial sector were followed by difficulties in other sectors of the economy, and as a result, production was reduced, unemployment was increased, consumer demand sharply was reduced, the real estate market was deteriorated, the British currency felt to its lowest level in 25 years. In the second half of 2008 UK economy entered a recession, and in the first half of 2009 UK GDP declined by 4.4% compared to the same period in 2008. However after the very strong downturn, UK's economy began to show signs of recovery since the second half of 2009. Macroeconomic statistics for 4th quarter of 2009 gave cause for optimism: the first time since the beginning of crisis weak growth of 0,3% had been recorded (Table 1.)

Table 1. GPD Growth (www.statistics.gov.uk)

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Household Consumption first time after the crisis has become positive in Q3 of 2009 growing by 0.1% (Table 2.)

Table 2. GDP by spending (Economic & Labor Market Review, Jan’10)
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The rate of inflation in UK has been slowed down in 2009 due to the decrease of demand caused by economic weakness. However there was sharp increase since the end of 2009 and in the first quarter of 2010 inflation has made 3,5%. The biggest impact on inflation had higher prices for transport services, housing and Vat rates’ increase. Economic crisis had a crucial impact also on labor market. In the first half of 2009 number of employees have been decreased by almost 271 thousand of, while unemployment rose to record level of…...

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