The paper "The UK Economic Analysis" is a perfect example of a micro and macroeconomic case study. The GDP in the UK is worth approximately $2860 billion representing 4.6% of the economy of the world. The economy has been experiencing growth, but the growth is expected to slow down between 2017 and 2018 due to the reduction in the investment plans. The incomes of the households started to squeeze due to the increase in inflation (Kesieme et al. , 2013). However, economists are expecting the UK to experience growth in the economy in the medium and short term.
Currently, the UK is in a position to borrow funds at low costs to ease the pressure associated with the public finances. It is a reflection that there are expectations of the market that the interest rates are likely to decline in the future. Figure 1: showing UK GDP Source: Kesieme et al. , (2013). The economy of the United Kingdom consists of a broad range of various sectors whose firms and firms have evolved greatly over time. Moreover, various changes in the levels of the Gross Domestic Product have been a result of the supply-side forces which include the technological progress and also the demand-side forces which include preferences and tastes of consumers.
However, the majority of the sectors are always simple, and therefore they view the economy as an important tool for developing policy, whereby they cannot all times capture the significance of specific activities. For instance, some of the environmental goods, as well as services, cannot be identified in data in a case when they are not classified into a particular sector. Output and employment The structure of the economy in the United Kingdom has shifted away from the manufacturing sector towards the provision of services, and specifically to the knowledge-intensive services which include; professional services, ICT, and finance.
Moreover, in the year 2011, the knowledge-intensive companies contributed to almost a third of the total output of the United Kingdom and also it creates many employment opportunities (Ball, Heafey, and King, 2007).
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