Uk Imports And The Recovery Of The Uk Economy

1873 Words Apr 8th, 2016 8 Pages
Economics 2
The Case Study: UK imports and the recovery of the UK economy
1. Brief Introduction
This case study will look at the meaning of “balanced economic recovery”, the value of imports to the UK economy, the benefits of a weak British pound, the reasons why the depreciation of pound failed to improve the UK balance of trade and the impact of a rise in taxation and cuts spending on the UK trade deficit.
1. Finding
1 Explain the term “recovery”.
The term “recovery” means expansion, which shows the strength of the economy after recession. In recovery, real GDP will start to increase and unemployment will fall. It is the cycle when the economy begins to grow again after recession. In the period of recovery, various indictors will increase such as Gross Domestic Product (GDP). (Manuel, 2016) In an economic recovery, workers demand will increase and companies are willing to employ more staff, which mean unemployment rate will decrease , worker’s confidence will start to increase and consumers are willing to consume goods and services. In other words, unemployment falling, national output and income, consumption, investment, imports and inflation all rising, economics growth accelerate. The exporters in the UK will increase their productivity in order to increase exports and reduce a negative balance on trade in goods account on the current account is known as trade deficit.
1 Explain how the value of imports into the UK is likely to be affected by
“The value of imports…

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