Article Compiled and authored by Moses Devaruban Freelance tutor M : 0790 3730 595
The World is changing, will you just survive? Or thrive? ‘May you live in interesting times’ is, so I am told, an old Chinese curse. Well, like it or not, the world is changing rapidly with developed countries economies reaching maturity and developing countries, achieving economic growth in double digit, year on year basis. The pace of growth of the Chinese economy is phenomenon and for the first time in 2011, it has become the world’s biggest manufacturer overtaking America. So, the old Chinese curse has been a blessing in disguise for the Chinese economy so far. In the developed world mainly in Europe and America, the population is ageing. In UK, there are more over 60’s than children under 15.The baby boomers generation (Post World War) are comfortably retiring and enjoying their twilight zone. But the middle age and young are anxious about future pension’s comfort, as governments struggle to recover from the finance crisis of 2008 and a double digit recession in 2012. From 2012, students entering university are expected to pay three times more than what they paid in 2010.There is also concerns about migration in to UK from non-eu countries. The local population have begun to question the benefit of immigration and it is a heatedly argued topic in political circles. It should be noted that Britain has been accepting migrants throughout its history, but that policy has been questioned as the local population are blaming the migrants as the problem as unemployment seems to be rising steadily in 2011 and continuing in 2012. The major concern has been youth unemployment (Age 18-25) which is quite worrying and the consequences of which was reflected in England riot of August 2011.The government Apprenticeship schemes for school leavers is gaining momentum but has not solved the problem entirely. Whilst UK employers agree that foreign migrant work force has a better work ethics, they are same times tend to take advantage of training schemes without paying the workers .The recent employment of no pay training scheme of supermarket is a good example of how multinational companies tend to exploit labour. The economic growth of the UK economy has been flat in the latter part of 2011 and continuing in 2012. The bank of England has been successful in controlling the inflation but it is still far off from the target rate of 2%.Even though the economy has been slowing down certain sectors are experiencing a rise. Notably, the motor car industry (eg JLR) has been experiencing demand for its luxury cars from India and China. And by 2015, it is forecasted that the capacity of the plant have to be increased to cope with the demand. The on-going euro crisis is making the financial markets nervous. Especially the PIIGS Countries’ (Portugal, Italy, Ireland, Greece and Spain) economies are showing no sign of recovery yet. So will the euro survive or thrive? Mainly this is a question on every economist mind. The euro zone including UK has borrowed itself to demise and the IMF and other financial institutions are compelled to bail them out. In my opinion the UK has wisely not join the euro; as it has weathered itself out of this crisis, with its own currency, sterling pounds. So, how can Economy survive in the short term and thrive in the long term?
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Article Compiled and authored by Moses Devaruban Freelance tutor M : 0790 3730 595 UK economy has survived from 2008 to 2012 but has not been able to avoid the double dip recession. As a major trading partner of Europe, the UK is not out of the woods yet, as the European zone is in crisis. The devaluation of sterling has been a welcome boom for exporters as foreign buyers would find our goods comparatively cheaper to other countries. But devaluation of a currency cannot be sustained and will not lead to economic growth. Whilst it can be argued that weaker pounds will help the importers of UK goods and services but with so many products available in the markets, it is quality of the product which will lead to import orders. In this context, the west midlands region of UK has a competitive advantage as the traditional and manufacturing hub of the world. AS the USA economy shows signs of resilience it is important to note that export orders of the UK economy will flourish. On the other hand, exports orders of India and China will also boost the UK economy when it comes to luxury car items such as JLR . As fears grow about a triple dip recession,UK economy is in a stronger position compared to it’s European counter parts. Also, in Europe, unemployment has recently risen to record levels.Only in the US,has unemployment shown a similar fall,but the US has seen much stronger economic recovery than the UK. In the 2007-13 recession,we have seen uK unemployment
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