Hey guys and girls! Hope the summer period is going well for everyone? It looks like it's great news for the UK as there are finally some signs of recovery since the mind blowing economic collapse in 2007. Government figures suggest that the British Chambers of Commerce are accurate on this occasion as trade index has reached 118.2 which is a 2.9% rise from that of last year. According to John Longworth, director general of the BCC, optimism for for future prospects are high as well as consumer confidence being on a high.
So on the whole, it can be suggested that the UK is rising out of the Economic depression as Exports are one of the components of AD. Does anyone remember being taught AD = C+I+G+(X-M)? The X stands for exports, which further suggests that AD is possibly rising, potentially raising GDP levels. Great right?
Nonetheless, Ernst & Young have predicted that the UK is expected to gather pace as early as 2014! This is mainly due to a steep rise in exports and business investment. It has also been calculated that GDP is expected to rise by 2.2% for 2014 and 2.5% for 2015. However, there are some conditions to go by. This figure can only be reached if there is a maintenance in consumer spending and housing recovery as this will cause AD to rise through less saving and more spending.
Exciting stuff! I will ensure to keep everyone posted. Thanks for reading!
No comments:
Post a Comment