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Recession in the UK and the Economic Condition - Case Study Example

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The author of the following paper under the title 'Recession in the UK and the Economic Condition' presents the worldwide recession which precipitated by the financial crisis in the United States has had disastrous consequences for the UK economy as well…
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Recession in the UK and the Economic Condition
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Download file to see previous pages The promising rise of industrial production in April last year did provide hope for an early recovery.  But this hope was to prove a mirage as the trend reversed in subsequent months. Though the UK took a little while to catch up with the crisis in the United States, at the beginning of the second quarter of 2008, the region’s economy was in an acute recession. It has been close to two years since the onset of a recession in the UK and the economic condition of the region remains weak and vulnerable. While some economists assert that the turnaround is already underway, others take a more pessimistic view. This essay will try to answer this important question, by way of perusing scholarly and news media resources. (Lynch, 2009)
The recession that began in early 2008 gave no signs of recovery even after one full year. As the industry data for third-quarter 2009 revealed, the economy shrank a further 0.4 % during this period, which completed the sixth consecutive quarter in decline. As per the Office for National Statistics, by this time “output has slumped 5.9% since the onset of recession - almost as bad as the 6% slump seen in the early 1980s. The lingering decline came despite interest rates at a record low of 0.5% since March, additional Government spending and an unprecedented pounds 175 billion boosts to the money supply through quantitative easing” (Lynch, 2009). But even as the UK was enduring this economic decline, neighboring countries such as France and Germany have already shown early signs of recovery.
While neighboring countries in Europe were already into recovery, it was only during the heralding of the year 2010 that the UK economy showed clear signs of recovery. Financial experts have declared that technically the UK economy has emerged from recession, but concerns still remain about the stability and strength of the pound against the dollar and the euro. Due to the internal economic turmoil, there is a strong possibility for the deflation of currency during this period of recovery. ...Download file to see next pagesRead More
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