The UK has been a hub for economic growth for centuries. The country has grown from its humble beginnings as a small fishing village to what it is today: a global powerhouse that produces some of the world’s most innovative products and services.

The country’s growth rate in GDP per capita is high at 2.6%, compared to other developed countries, such as Japan and Germany, which are around 0.8% and 1.6% respectively.

In this guide, you’ll view the UK’s economic growth which is largely driven by its rapid productivity growth and has been one of the most impressive in the world. So why wait? Read On!

How Economic Growth of a Country Is Measured?

Increases in the quantity and quality of the economic commodities and services that a system creates are referred to as economic growth.

The geometrical yearly rate of GDP growth between the first and the final year during a period is referred to as the “rate of economic growth.” Without taking into account any variations in the GDP around this increase, this growth rate indicates the pattern in the mean level of GDP across the period.

Intensive growth is the term used by economists to describe a rise in economic growth brought on by the more effective use of resources increased productivity of labor or capital equipment etc.

Extensive growth is only the result of an increase in the number of inputs accessible for usage (such as an influx of people or the expansion of a region).

The Two Major Factors of UK’s Economic Growth 

The UK has been experiencing economic growth for decades now. The country has been able to achieve this because of its strong economic fundamentals such as a highly skilled labor force and innovative companies.

The UK’s economic growth is mainly driven by two factors:

• Firstly, its strong exports are mainly driven by its highly skilled labor force.
• Secondly, its large domestic market which makes it possible for businesses to operate at lower costs due to its high demand for their products or services.

Reasons Why Economic Growth of UK is going up as Rocket

The reason why the UK economy is going up a rocket is because of the following reasons:

• The UK has become one of the most successful economies in Europe due to its history of innovation and entrepreneurship – both by individuals and companies alike – which has helped it to become one of the most globally integrated economies in the world.
• The Bank of England has adopted an expansionary monetary policy to stimulate growth, which helps in increasing jobs and wages and boosting consumer spending.
• Many new businesses are coming into the country, which leads to more job opportunities.
• The UK has been increasing its exports in recent years, which causes growth in the economy as well as increases tax revenue for the government treasury.

Steps Taken by Government in Account of UK’s Economic Growth

The UK is enjoying a period of sustained economic growth with unemployment at its lowest level for over a decade. The latest figures show that the economy grew by 0.8% in the second quarter of 2019, compared to the same period last year. This is in stark contrast to other advanced economies such as France, Germany, and Japan, where growth is much lower.

• The UK government has taken steps to boost growth and create jobs by investing in infrastructure projects such as HS2, which will improve connectivity between London and Birmingham and provides more opportunities for businesses across the Midlands region.
• The government also announced plans to build a new nuclear power plant at Hinkley Point. These investments are expected to create tens of thousands of jobs during construction and once built will help reduce our reliance on foreign energy imports from countries like Russia and Saudi Arabia.
• In addition to this, Brexit has also helped boost UK economic growth because it offers an opportunity for companies to invest in new technologies or expand their businesses overseas after exiting the EU single market.

5 Productivity Factors that UK Works On 

The UK has been able to grow its economy at a faster rate than other developed countries because of its high level of productivity. The country’s productivity growth has been among the highest in Europe, and it is still growing rapidly. However, all of these skills can be learned through grasping the concepts of management. For that, you can opt for any online management dissertation writing help. They not only assist in academic tasks but also provides an in-depth analysis of the topics.

The UK’s strong productivity performance is due to several factors:

• Strong technological progress
• An educated workforce
• A skilled management team.
• Good infrastructure.
• Supportive business environment.

Some Financial Crisis that the UK May Face Because of High Economic Growth

The UK economy is still growing and expanding. The Gross Domestic Product (GDP) has been increasing since 2010 when the country was hit by the global financial crisis.

• The UK economy is one of the most developed economies in Europe. It has a high level of productivity and quality of life. However, it also faces several challenges that include Brexit and protectionism. The Brexit deal will cause uncertainty in the financial market for some time to come and may hinder investments by businesses at home or abroad.
• On top of that, there are many other factors affecting economic growth such as the aging population, low savings rate among young people, and low wage growth among low-income earners due to automation technology replacing human jobs such as taxi drivers or bank tellers.
• The UK may also face a challenge in terms of employment opportunities due to automation technology replacing human jobs such as taxi drivers or bank tellers.

Final Thought

The UK has been able to grow its economy at a faster rate than other developed countries because of its high level of productivity, employment rate, and domestic market. The country’s economic growth has been among the highest in Europe and will continue to grow rapidly if they keep working like this.

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References

PES.2018. Economics Student Read Steven Levitts Freakonomics. Online Available at: <https://www.professionalessayservice.co.uk/economics-student-read-steven-levitts-freakonomics/> (Accessed: 10 August 2022).

Malecki, E.J., 2018. Entrepreneurs, networks, and economic development: A review of recent research. Reflections and extensions on key papers of the first twenty-five years of advances.