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Uk Economic Growth

In: Business and Management

Submitted By wanzalade
Words 1266
Pages 6
Introduction
The UK has experienced mixed performance in its economic growth over the last decade. From 2004 to 2014 UK’s economic growth has not been constant considering a range of factors that have affected such growth over these years leading to variations in economic growth. The situation has necessitated the UK government to introduce policies aimed at improving the UK economy and steer its growth. Economic growth and its effects
Economic growth is an important aspect in all countries around the world. Economic growth is the increase in the output a society’s goods and services (Szostak, 2009; Dolan, Frendreis & Tatalovich, 2008). This value also includes income earned by citizens. The ways used to measure economic growth varies and the most common measurement of increase in production that results from economic growth is Gross National Product and Gross Domestic product. GNP measures the total output of services and goods produced by a country’s economy.
Economic growth in the UK has varied from 2004 to 2014 especially when real GDP growth rate in these years are compared to previous years. From 2004 to 2007 real GDP growth rate compared to previous years was relatively stable. In 2004 real GDP growth rate was 2.91% followed by growth rates of 2.77%, 2.6% and 3.63% (Statista, 2014a). 2008 to 2009 saw fall in real GDP growth rates. These were -0.97% and -3.97% in 2008 and 2009 respectively (Statista, 2014a). This can be attributed to the financial crisis that was being experienced all over the world. However from 2010 to 2014 the UK continued experiencing increased growth rates except in 2012 when there was a fall in real GDP. In 2010 the growth rate in real GDP stood at 1.8% while in 2013 it was 1% (Statista, 2014a).
The mixed high and low economic growth in the UK from 2004 to 2014 had a number of consequences. Real GDP growth rate stability from 2004...

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