Presentation on the topic Economical development of Great

Presentation on the topic: "Economical development of Great Britain" Performed by: Ivolgina Elizaveta, Nikulnikova Mariya. Checked by: Popova E. A.

The United Kingdom has the fifth-largest national economy (and second-largest in Europe) measured by nominal GDP and tenthlargest in the world (and third-largest in Europe) measured by purchasing power parity (PPP). In 2014 the UK was the ninthlargest exporter in the world and the fifth-largest importer, and had the second largest stock of inward foreign direct investment and the second-largest stock of outward foreign direct investment. The UK is one of the world's most globalised economies. The UK economy comprises (in descending order of size) the economies of England, Scotland, Wales and Northern Ireland.

The service sector dominates the UK economy, contributing around 78% of GDP; the financial services industry is particularly important and London is the world's largest financial centre (tied with New York). The British aerospace industry is the second- or third-largest national aerospace industry. The pharmaceutical industry plays an important role in the economy. The automotive industry is also a major employer and exporter. The British economy is boosted by North Sea oil and gas production. The size of London's economy makes it the largest city by GDP in Europe.

In the 18 th century the UK was the first country to industrialise and during the 19 th century had a dominant role in the global economy. From the late 19 th century the Second Industrial Revolution in the United States and Germany presented an increasing economic challenge, and the costs of fighting World War I and World War II further weakened the UK's relative position. However, as of 2015 it still remains a great power with global strengths and an influential role in the world economy.

In 2008, the UK entered a recession during the financial crisis of 2007– 08, its first for nearly two decades, and initially experienced a deeper downturn than all of the G 7 except Japan. However, since 2013 the UK has been in a nascent economic recovery and is firmly in expansion territory. The UK economy is now 5. 9% bigger than its pre-crisis peak and is currently the best performing economy in the G 8.

The Bank of England is the UK's central bank and its Monetary Policy Committee is responsible for setting interest rates. The currency of the UK is the pound sterling, which is also the world's third-largest reserve currency after the US dollar and the euro, and also the fourth-most-valued currency in the world and the most valued currency outside the Middle East. The UK is a member of the Commonwealth of Nations, the European Union, the G 7, the G 8, the G 20, the International Monetary Fund, the Organisation for Economic Co-operation and Development, the World Bank, the World Trade Organisation, Asian Infrastructure Investment Bank and the United Nations.

Following the end of the Second World War, the United Kingdom enjoyed a long period without a major recession (from 1945 to 1973) and a rapid growth in prosperity in the 1950 s and 1960 s, with unemployment staying low and not exceeding 500, 000 until the second half of the 1960 s. However, following the 1973 oil crisis and the 1973– 1974 stock market crash, the British economy fell into recession.

A new period of neo-liberal economics began in 1979 with the election of Margaret Thatcher who won the general election on 3 May that year to return the Conservative Party to government after five years of Labour government. However, Thatcher's modernisation of the British economy was far from trouble free; her battle against inflation resulted in a substantial increase in unemployment from 1. 5 million in 1979 to over 3 million by the start of 1982, peaking at nearly 3. 3 million in 1984, and one of the UK's worst recessions throughout 1980, after which GDP did not reach its pre-recession rate until 1983.

The increase in unemployment was substantially due to government economic policy which resulted in the closure of outdated factories and coalpits which were no longer economically viable; this process continued for most of the 1980 s, with newer industries and the service sector enjoying significant growth. Unemployment had fallen below 3 million by the time of Thatcher's third successive election victory in June 1987. However, the British economy slid into another recession in late 1990, concurrently with a global recession, and this caused the economy to shrink by a total of 8% from peak to trough and unemployment to increase to nearly 3 million by the end of 1992.

During Blair's 10 years in office there were 40 successive quarters of economic growth, lasting until the second quarter of 2008. This extended period of growth ended in 2008 when the United Kingdom suddenly entered a recession – its first for nearly two decades – brought about by the global financial crisis. Banks had to be partly nationalised. The recession saw unemployment rise to nearly 2. 5 million by October 2009. The UK economy had been one of the strongest economies in terms of inflation, interest rates and unemployment. In 2007, the UK had the world's third largest current account deficit, due mainly to a large deficit in manufactured goods. In 2010, the United Kingdom ranked 26 th on the Human Development Index.

Following economic stagnation during 2013, by the end of 2014, UK growth had become the fastest in the G 7, the fastest in Europe and employment had risen to the highest figure since records began. A report released by the Office for National Statistics on 14 May 2013 revealed that over the six-year period between 2005 and 2011, the UK dropped from 5 th place to 12 th place in terms of household income on an international scale—the drop was partially attributed to the devaluation of sterling over this time frame.

Taxation in the United Kingdom may involve payments to at least two different levels of government: local government and central government (HM Revenue & Customs). Local government is financed by grants from central government funds, business rates, council tax and increasingly from fees and charges such as those from on-street parking. Central government revenues are mainly income tax, national insurance contributions, value added tax, corporation tax and fuel duty.

Agriculture in the UK is intensive, highly mechanised, and efficient by European standards, producing about 60% of food needs, with less than 1. 6% of the labour force (535, 000 workers. Around twothirds of the production is devoted to livestock, one-third to arable crops. Agriculture is subsidised by the European Union's Common The UK retains a significant, though Agricultural Policy. reduced, fishing industry. Its fleets, based in towns such as Kingston upon Hull, Grimsby , Fleetwood, Newlyn, Great Yarmouth, Peterhead, Fraserburgh, and Lowestoft, bring home fish ranging from sole to herring.

The construction industry of the United Kingdom contributed gross value of £ 86 billion to the UK economy in 2011. The industry employed around 2. 2 million people in the fourth quarter of 2009. There were around 194, 000 construction firms in the United Kingdom in 2009. The largest construction project in the UK is Crossrail. Due to open in 2018, it will be a new railway line running east to west through London and into the surrounding countryside with a branch to Heathrow Airport. The main feature of the project is construction of 42 km (26 mi) of new tunnels connecting stations in central London

In 2011 the UK manufacturing sector generated approximately £ 140, 539 million in gross value added and employed around 2. 6 million people. In 2008 around 180, 000 people in the UK were directly employed in the UK automotive manufacturing sector. The aerospace industry of the UK is the second- or third-largest aerospace industry in the world. The industry employs around 113, 000 people directly and around 276, 000 indirectly and has an annual turnover of around £ 20 billion. The pharmaceutical industry employs around 67, 000 people in the UK and in 2007 contributed £ 8. 4 billion to the UK's GDP and invested a total of £ 3. 9 billion in research and development.

Tourism is very important to the British economy. With over 27 million tourists arriving in 2004, the United Kingdom is ranked as the sixth major tourist destination in the world. London, by a considerable margin, is the most visited city in the world with 15. 6 million visitors in 2006, ahead of 2 nd placed Bangkok (10. 4 million visitors) and 3 rd placed Paris (9. 7 million).

London is the world capital foreign exchange trading, with a global market share of nearly 41% in 2013 of the daily $5. 3 trillion global turnover. The currency of the UK is the pound sterling, represented by the symbol £. The Bank of England is the central bank, responsible for issuing currency. Banks in Scotland Northern Ireland retain the right to issue their own notes, subject to retaining enough Bank of England notes in reserve to cover the issue. Pound sterling is also used as a reserve currency by other governments and institutions, and is the thirdlargest after the US dollar and the euro. The UK chose not to join the euro at the currency's launch.

The United Kingdom is a developed country with social welfare infrastructure, thus discussions surrounding poverty tend to be of relative poverty rather than absolute poverty. The poverty line in the UK is commonly defined as being 60% of the median household income. In 2007 – 2008, 13. 5 million people, or 22% of the population, lived below this line. This is a higher level of relative poverty than all but four other EU members. In the same year, 4. 0 million children, 31% of the total, lived in households below the poverty line, after housing costs were taken into account. This is a decrease of 400, 000 children since 1998– 1999.

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