The United Kingdom economy ranks fifth all globally and second in the European Union regarding the Gross Domestic Product. Although the position varies when other parameters are considered in the ranking, the fact remains that it ranks top among the world economies. Over the past three years, their economy uk has experienced significant growth in several sectors.
One of the main reasons this economy uk does well is because it combines the economies of England, Scotland, Wales and Nothern Ireland. The service industry is an important sector of this economy as it greatly dominates all the other sectors. To be precise, the service sector contributes approximately 80% of the overall GDP followed from a distance by the financial services industry. London, the capital city of the United Kingdom, is the world’s largest commercial center on level terms with its counterpart New York in the United States of America.
The pharmaceutical, automotive and aerospace industries are crucial sectors in the UK’s economy. Gas and oil production in the North Sea boosts the economy uk in a large way. In fact, the oil and gas reserves were approximated to be worth around 120 Billion pounds some years back.
In 2015, the economy uk experienced some regression in its growth. However, domestic demand remained strong, and that was attributed to the reduced prices of oil and related products. It is therefore expected that some growth will be seen in 2016 with the potential drivers being consumers’ spending and business investments.
Several risks that may affect the expected growth are short term ones and greatly affiliated to the international scope, precisely emerging markets in certain sectors. However, these risks can be turned into potential benefits if there is an improvement in the global environment and a subsequent improvement in the productivity of the UK.
Inflation was zero in 2015 but is expected to rise slightly in 2016. This will allow the MPC to raise the interest rates gradually commencing mid-2016.
The UK economy still holds as one of the rapidly growing economies in the World.