The impact of global recession on UK economy
The impact of global recession on UK economy
2. Executive summary
Global recession hits every business economy mot recently and that United Kingdom is no exception of the reality as there implies to a period of economic slowdown as according to IMF, “there are factors into account when defining a global recession, but it states that global economic growth of 3 percent or less which is equivalent to a global recession” (2008; 2008). UK national recession is identified by two quarters of decline, defining a global recession is more difficult, because developing nations are expected to have a higher GDP growth than developed nations (2008). Aside, according to IMF, the real GDP growth of the emerging and developing countries is on an uptrend and that of advanced economies is on a downtrend since late 1980s. The world growth is projected to slow from 5% in 2007 to 3.75% in 2008 and to just over 2% in 2009. Downward revisions in GDP growth vary across regions. Among the most affected are commodity exporters, and countries with acute external financing and liquidity problems. Thus, there suffered smaller declines because their financial situations are more robust. They have benefited from falling commodity prices and they have initiated a shift toward macroeconomic policy easing ( 2008). The IMF estimates that global recessions seem to occur over a cycle lasting between 8 and 10 years. During what the IMF terms the past three global recessions of the last three decades, global per capita output growth was zero or negative (2008). The research will put in relevance on global recession as well as UK economy, recognizing in impacts of the recession within the UK context and the need to investigate ample steps and ways in order to avoid negative effects of the global recession in the UK. The need to be aware of how global recession in the UK is being manifested, the need also to understand what global recession is about and how UK economy is affected by the situation from this recent year, 2009 investigating indications within UK.
The problem of global recession in the UK is affecting business operations mostly on small and medium sized enterprises as well as several multinational corporations, assuming in regional unemployment and labor mobility within UK from wherein notable feature is the recent rise in the volatility of unemployment in the high wage as explained by the relative growth of personal sector mortgage indebtedness in that region and greater consumption demand sensitivity to interest rate shocks. Regional unemployment rate differences are largely determined in the manual labor market and show only slight evidence of cyclically corrected convergence. This is underpinned by relatively low migration amongst manual workers and little sensitivity of out-migration to regional labor market slack. Thus, several UK regions may have experienced persistent employment growth and attracted significant immigration of non-manual labor to low unemployment and increasing relative wage labor markets. The episode as characterized by UK economy downturn and the recovery period. It is helpful to separate the two when comparing the accounting results for several countries, since many countries experienced the downturn early this year, whereas the strong economic performance by the UK can be limited as represented by the efficiency and labor wedges across, the declines in the labor wedges of the UK and Ireland are of a far larger magnitude than the corresponding ones like in the US. The UK was the only country to introduce far-reaching labor market reforms, UK the reforms caused decline in both union density and the measured labor
4. Aims and Objectives
The research aim will be recognizing secondary data of global recession prevalence in the UK economy as well as creating in primary research investigation determining in first hand information on the most recent case of global recession affecting UK economy, in terms of business markets and labor employments and how it is present in SMEs and MNCs in particular. For the objectives, the need to utilize integrative research and information placing weight to global recession facts and figures in the year 2009, looking recession points within the UK context and be able to assimilate pressing aspects of the recession within UK economy and to possibly bring in literature support from certain journal and article studies of academic formation and are peer reviewed as well as recognizing of the GDP growth of SMEs and MNCs in the UK probably looking into quarterly gaps from 2007 up to the present times.
For research methodology, case study application is essential bringing in relevant knowledge towards global recession and how it incurs impact towards the UK economy, positively or negatively from within survey interviews to be given by certain UK SMEs and MNCs, participants will comprise of no less than a hundred, these are the ones affected by global recession regarding their loss of jobs and the status of their employment from the UK companies, these can be employees being laid off due to recession effects and global crisis, from TESCO or Wal-Mart or coming from those technology centered industries operating in the UK. Thus, creating in survey analysis of certain regional unemployment and labour mobility in UK from recent rise in volatility of unemployment in the high wage SMEs and MNCs. Also, comparative analysis of global recession impacts both from SME employees and MNC employees to be in tables, graphs or charts.
6. Discussion feasibility
For feasibility discussion, there maybe concern with the coherence of research development as a matter of empirical evidence as there may constitute to global recession from the economic areas of UK wherein research process can be limited upon acquiring of relevant data and information, as such wherein existing research paradigm and resource database needs to be strengthened in respect of recession indicators of this year, a relatively innovative area of research inquiry, can control feasible studies from a need to develop UK noted methodological framework to enable ample findings as well as analysis and can assume incomplete conclusion drawn at the stage of requiring research study verification.
7. Concluding summary
For conclusion, there sets global recession reality and research data sets as greatly enhance knowledge of valuable resource in an effort to understand the effects of economic globalization. While it remains possible for wealthy and determined countries to keep control of their wage structures, as growth in research methods validity and reliability and the overall success of the research study upon which it can place a positive note towards the period of recovery UK economy needs from this global crisis situation. Thus, literature problem implies rapid growth of high-wage exports having in substantially higher pace of UK economic growth. To be sure, higher growth globally can only be achieved if led by the comparatively successful, stable and wealthy nations of the global center. It cannot be achieved by liberalizing reform of small nations on the periphery. Further research on global recession in the UK economy should focus on ways to model issues in the labor market caused by unionization, attempting to identify clear assumptions of GDP growth.
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