business economics

BUSINESS ECONOMICS

What are the mechanisms by which a weakening world economy would impact the UK market ? In this context , how does the declining exchange rate of the pound against the Euro contribute to future prospects of the UK economy

The current economic crisis facing many countries in the world is sort of unavoidable . The US has already fallen victim to this predicament Other countries that form the G8 are speculated to follow suite . This crisis is just about everything . Falling banks , the drying up of credit crashing house prices , rising

unemployment , weakening growth and a ballooning budget deficit (Elliot , 2008 . This economic turmoil has not left the UK out either . The impact of the economic crisis is already being felt in the UK in different ways . Economists believe that the rain will however not stop soon and the UK market will be affected for quite a while before normalcy resumes

Economic organizations have predicted that a severe economic downturn will be faced in the UK in 2009 . One such organization (The Organisation for Economic Co-operation and Development ) has predicted that economic output in the UK will fall by 1 .1 in the year 2009 . It is important to note that , this percentage will be more than any other major G8 country . This is sure to be detrimental , considering that the UK has been post high annual economic growth rates annually since 1992 In ten years from the second quarter of 1992 , the UK posted a real annual growth rate...