Calculation of the correlation coefficient between the inflow of foreign direct investment and economic growth rates on the example of Great Britain and Hungary. Economy and foreign trade of Great Britain. The main features of the British economy
In essence, it is a calculation of inflation for the consumer basket, but without taking into account particularly mobile inflationary components - electricity, fuel and food. Since these two indicators can change in price quickly, depending on a number of situational and seasonal factors, they are “cut off” to get a net inflation indicator. Thus, together with the CPI, the values of its core are immediately visible, which helps to correctly understand how inflation has changed over the reporting period.
Core Output PPI - UK
An indicator showing the level of selling prices for goods in the industry. At its core, it is an inflationary indicator that signals an increase or slowdown in inflationary pressure from producers (an increase in output prices may not or only slightly affect the overall level of inflation, since trade costs may decrease). From the total value of the indicator, a core is usually distinguished, which does not take into account the prices of food, fuel and electricity. The core of the producer price index "at the exit" is a strong indicator belonging to the first group, therefore it has a significant impact on the market.
Sales balance sheet of the Confederation of British Industry ( CBI retail sales volume balance) - Great Britain
Economic sentiment index published by the British Confederation of Industry. It comes out in the form of a review-report, represented by numerical values and reflects the business sentiments of top managers in the UK regarding the state of the manufacturing sector of the economy. The index has a psychological meaning. It is a very important indicator for the British pound, although it weakly correlates with economic realities.
RICS House Price Balance - UK
The indicator is a report on house price changes published by the Royal Institution of Independent Experts. The indicator reveals the trend of changes in the cost of housing in the UK. The indicator does not have a strong momentary impact on the British pound, however, it is a leading indicator and shows the number of opinions of experts reporting on the rise / fall in prices in their region.
M4 money supply (M4 money supply) - UK
Any monetary aggregate is a type of money and cash (derivatives of money), which differs from each other in the degree of liquidity. Monetary aggregates measure the amount of money supply in the country, therefore, any increase in the indicator automatically leads to an increase in inflation. The indicator is measured either as a percentage or directly in the amount of money expressed in the national currency.
Monetary aggregates in Britain have their own gradation structure:
M0 = banknotes and coins in circulation + cash in banks + bank balances at the Bank of England.
M1 = banknotes and coins in circulation + funds in private sector current and deposit accounts that can be transferred by cheque.
M2 = banknotes and coins in circulation + interest-free bank deposits + building society deposits + National Savings System accounts.
M3 = M1 + all other private sector bank deposits + certificates of deposit.
M3c = M3 + bank deposits in foreign currency.
M4 = M1 + most private sector bank deposits + deposits of money market instruments; aggregate M4 characterizes the liquidity of the private sector.
It is M4 that is the most interesting for the British pound, which reacts to changes in this indicator more actively than to all other monetary aggregates. M5 = M4 + building society deposits.
Construction PMI - UK
The indicator shows the activity of purchasing managers in the construction sector. It is calculated using more than fifty indicators included in the structure of this indicator. If the indicator rises, it indicates the potential growth of the British pound. When calculating the index, purchasing managers are interviewed in the areas of labor employment, production, new orders, deliveries and stocks. The indicator is a leading signal, so it is important enough for market .
Nationwide Consumer Confidence Index) - Great Britain
The indicator, calculated by the Nationwide Building Society, is one of the indexes that shows the level of consumer confidence in Britain. The indicator has a moderate impact on the market. Often ignored by the British pound and does not have a major impact on economic expectations.
Gfk Consumer Confidence Index - UK
An indicator calculated by the German economic institute Gfk (Growth for knowledge). The institute is the oldest in Germany in the field of economic research. Located in the city of Nuremberg. World leader in economic statistics. The Gfk consumer sentiment index is an indicator of consumer sentiment not only in Germany, but also in Britain. The indicator has a moderate impact on the market. Often ignored by the British pound and does not have a major impact on economic expectations.
Manufacturing Purchasing Managers Index ( Purchasing Managers Index - PMI) - Great Britain
The indicator shows the level of business activity of the industrial sector in Britain and is similar to similar indicators in other countries. If, after a period of strengthening, the PMI begins to show a decrease, then this anticipates a downward reversal of the business cycle and the curtailment of industrial activity. If PMI, having reached a minimum, turns up, then this is a sign of a future economic recovery.
Service Purchasing Managers Index (Service PMI) - UK
The indicator is calculated on the basis of surveys of managers in the service sector and is similar to similar indicators in other countries. The purpose of the surveys is to assess the changes taking place in this industry. Index numbers below 50 bp are a signal for a slowdown in the UK economy.
The formation of the final indicator is influenced not only by objective factors, but also by psychological ones (subjective assessment of the interviewed managers). This adds weight to the Service PMI, and therefore bidders
pay special attention to this indicator.
Consumer Price Index (CPI) - UK
The indicator monitors changes in retail prices for goods and services included in the consumer basket. The calculation of the index includes prices for food, clothing, education, health care, transport, utility bills, and leisure. The indicator is calculated monthly and is the main "barometer" of inflation in any country, including Britain. It is considered the most important inflation indicator.
Index industrial production Confederation of British Industry (CBI industrial trends) - UK
Review of the state of the manufacturing sector of the UK economy, published by the Confederation of British Industrialists. Published monthly and reflects business sentiment in the business environment. It has no direct connection with the real prospects for the development of the economy. The market pays moderate attention to the indicator, giving more preference to the main CBI report.
Retail Price Index (RPI) - UK
Price index for goods and services in retail stores. The Retail Price Index is published monthly by the Central Bureau of Statistics and is calculated based on the prices of about 130,000 different consumer goods. RPI is one of the indicators of Britain's inflation rate.
Retail price index excluding mortgage payments ( RPI Ex Mort Int. Payments - RPI-X) - Great Britain
An inflationary indicator similar to the retail price index, but calculated without taking into account interest payments on loans for the purchase of real estate. It has a high importance for the exchange rate of the British pound compared to the RPI.
DCLG House Price Index - United Kingdom
The indicator shows the annual change in prices in the housing market, published monthly. The data is provided by The Department for Communities and Local Government (hence the name of the indicator). The indicator is low for the British pound.
Halifax House Price Index - United Kingdom
The indicator is calculated by Halifax and is an annual index based on quarterly changes. The data is compared with the same period of the previous year in order to exclude monthly fluctuations. The indicator has an average value for the pound sterling.
Hometrack House Prices Index - United Kingdom
The data on prices in the housing market, provided by the Hometrack agency, are included in the list of significant indicators of the stability of the UK property market. The Hometrack housing price index indicates how the range of prices has changed in the residential real estate market.
Nationwide House Price index - United Kingdom
The indicator reflects the situation in the housing sector based on statistics compiled by the building society Nationwide. Influence at currency market very restrained.
Rightmove House Price Index - United Kingdom
The indicator shows the change in trends in housing prices, is a leading indicator. The index is calculated by the information English real estate portal Rightmove and is published every third Monday of the month.
Input Producer Price Index ( Producer input prices - PPI input) - Great Britain
This indicator reflects the change in the level of prices for components and semi-finished products in the industry (an increase in producer prices "at the entrance" may not affect the final inflation, since it is possible to reduce costs in the production process). The indicator has a strong influence on the market and, in particular, on the British pound sterling. It is paired with the Core Input PPI "core" indicator.
Output Producer Price Index ( Producer output prices - PPI output) - Great Britain
The indicator determines the change in the level of selling prices for finished products and goods in industry. It is just as strong an indicator of inflation as PPI Input. Reflects inflationary pressure on the economy from exporters and manufacturers. An increase in input producer prices may not be reflected in final inflation, since it is possible to reduce costs in the process in the field of trade.
Mortgage lending (Net Mortgage Lending) - UK
An indicator of the net volume of mortgage lending according to statistics from the British Banking Association (BBA). The dynamics of mortgage lending directly depends on the cost of the loan, which is regulated by the interest rate. Excessive growth in the lending sector could lead to significant demand for real estate, which is driving home prices up.
In order to prevent "overheating" of the market, the Bank of England may raise interest rates, thus reducing the price pressure in the real estate sector. The growth of this indicator has an impact on the market and is perceived by players as positive for the British pound.
Number of approved applications for mortgage(Mortgage Approvals) - United Kingdom
The indicator is a leading indicator of the Net Mortgage Lending indicator and anticipates the data that will be published on it. The impact on the market is weak.
Number of approved mortgages according to the British Banking Association - UK
Unsecured consumer credit (Consumer credit) - UK
A high value of the indicator may indicate an "overheating" of the economy, when consumers take out more loans than is necessary for a normal standard of living. Published monthly. Has a limited impact on the market.
Total Business Investment - UK
The indicator shows the total volume of capital investments of all enterprises in Britain. The upward trend has a positive effect on the national currency, because high levels business investments are a sign of a strong economy.
Total Mortgage Lending According to the British Banking Association - UK
Total Mortgage Lending According to the Council of Mortgage Lenders - United Kingdom
Balance of Payments (Current Account) - United Kingdom
The indicator is calculated on international financial transactions between residents and non-residents of the country, being part of the country's current account balance (goods, services, income, current transfers), but only in relation to financial capital. In fact, it is the difference between the amount of payments coming from abroad and the amount of payments going abroad.
Consumer lending (Net Consumer Lending) - UK
An indicator showing the volume of loans issued to the population for consumer needs. Has a moderate influence on the market and on british pound sterling .
Gross domestic product (GDP) growth - United Kingdom
An indicator that measures the rate of increase in gross domestic product. GDP is the total value of all goods and services produced during the year in the territory of the country without dividing the resources used for their production into imported and domestic. Most often, two methods of calculating GDP are used: firstly, by summing up all incomes in the economy (wages, interest on capital, profits and rents), secondly, by summing up all expenditures made (consumption, investment, government purchases of goods and services). , as well as net exports). GDP is main characteristic economic success of the country, tracking its economic growth or recovery. GDP growth is an important indicator for the British pound. At the same time, the strongest reaction of the currency usually happens on the quarterly data of the indicator.
Production in the manufacturing industry (Manufacturing output) - UK
An indicator showing the volume of output produced by the manufacturing industry. The indicator is expressed in prices and is an indicator economic growth. The market does not work out the release of data very strongly, since the contribution of the manufacturing industry to the gross domestic product has recently been less than 20%. The indicator is published monthly.
Industrial production - UK
An indicator of the dynamics of the volume of industrial production, defined as the ratio of the current volume of production in monetary terms to the volume of industrial production in the previous or other base period.
Household Expenditure - UK
An indicator of spending on consumer services and durable and non-durable goods produced domestically and imported from abroad.
Bank of England interest rate decision (MPC rate announcement) - UK
The repo interest rate is the interest rate at which the Bank of England issues short-term loans secured by securities. This interest rate is the main one in the UK. (Repo - repurchase agreement - an agreement under which the seller undertakes to redeem the security back from the buyer at a set price on a certain date in the future).
Retail Sales - UK
Index of change in retail sales volume. This indicator is the main indicator of consumer spending, and on the basis of it, among other things, the consumer price index is calculated. This indicator is measured as a percentage, published monthly.
Medium wage(Average earnings growth) - UK
The indicator is calculated by taking into account the growth in earnings over the past three months (all payments that were actually made, and not "accrued") are taken into account. This is a good indicator of the future rate of inflation, since rising wages, if not offset by rising labor productivity, cause prices to rise. It is one of the defining indicators according to which the Bank of England determines the level interest rates. Published monthly. It has a significant impact on the market.
Average salary excluding bonuses (Avg Earnings ex bonus) - United Kingdom
The indicator is calculated by taking into account the growth in earnings over the past three months (all payments are taken into account, with the exception of bonuses and bonuses). This is a good indicator of the future rate of inflation, since rising wages, if not offset by rising labor productivity, cause prices to rise. It is one of the defining indicators according to which the Bank of England determines the level of interest rates. Published monthly. It has a significant impact on the market.
Trade balance (Global trade, trade balance) - United Kingdom
The totality of all trade operations of the country at the world level; The trade balance is the difference between the volume of products produced and exported from the country and the volume of products imported into the country. Simply put, the trade balance can be determined by a simple formula: Trade balance = export-import. If the trade balance turns out to be positive, then this means that the economy is developing successfully and the trade balance is in a state of surplus. If, on the contrary, the trade balance is in the red, then there is a deficit, and this will have a bad effect on economic processes, on the national currency rate, on the country's confidence and creditworthiness. The trade balance is measured directly in the monetary units of the country for which this indicator is published. Accordingly, the UK trade balance is measured in British pounds. The indicator belongs to the first group and is one of the most important indicators of the success of the economy.
Trade balance excluding trade with EU countries ( Global trade, Non-EU trade balance) - Great Britain
The total of all British trade transactions at the world level, minus trade with countries that are part of the European Union. The trade balance is the difference between the volume of products produced and exported from the country and the volume of products imported into the country. Simply put, the trade balance can be determined by a simple formula: Trade balance = export-import. If the trade balance turns out to be positive, then this means that the economy is developing successfully and the trade balance is in a state of surplus. If, on the contrary, the trade balance is in the red, then there is a deficit, and this will have a bad effect on economic processes, on the national currency rate, on the country's confidence and creditworthiness. The trade balance is measured directly in the monetary units of the country for which this indicator is published. Accordingly, the UK trade balance is measured in pounds sterling. The indicator belongs to the first group and is one of the most important indicators of the success of the economy.
Unemployment rate ( Unemployment - Claimant count rate) - Great Britain
The indicator is one of the main indicators of unemployment in Britain. The unemployment rate shows the percentage of the working-age population that is currently unemployed. The indicator is based on statistics on the number of applications of the unemployed for employment in employment centers and reflects current changes in the UK unemployment rate.
ILO Unemployment Rate - UK
The indicator is one of the main indicators of unemployment in Britain. The unemployment rate shows the percentage of the working-age population that is currently unemployed. Calculated on the basis of research by the International Labor Organization based on data for the last three months.
UK public sector net demand for cash (Public sector net cash requirement - PSNCR) - Great Britain
The indicator reflects the state of the British budget and represents the difference between revenues and expenditures of the state budget. An excessive budget deficit leads to an increase in public debt and can act as a catalyst for accelerating inflation. This situation is caused either by significant expenditures or insufficient inflow of money into the budget.
UK public sector net borrowing ( Public Sector Net Borrowing - PSNB) - Great Britain
The indicator shows the total amount of loans that business entities need to make in order to balance their expenses. Loans made only by the government constitute public debt. The widening deficit has a negative impact on the British pound, however, has a limited impact on the market.
British Banking Association Net Mortgage Lending (BBA Net Mortgage Lending) - UK
An indicator showing the growth rate of volumes in the mortgage lending sector in Britain, excluding "noise". This indicator signals a real change in the activity of issuing loans in the housing market, therefore, is a predictive indicator of some indicators in the construction and real estate sectors, as well as consumer confidence and optimism indices. The reaction of the British pound to the release of this indicator is moderate.
Economic development
The UK is one of the seven world's economically developed countries. It has deposits of oil and gas produced in the North Sea, coal and limestone. The land area suitable for agriculture is 77% of the UK. The labor resources of the country unite highly qualified workers and prominent scientists. Over the past 20 years, such transformations have been carried out in the English economy "1) the public sector has been reduced (such giants of the English economy as British Telecom, British Coal were sold), tax rates have been reduced from individuals and legal entities; 3) economic deregulation has been carried out (with a simultaneous reduction government spending)
The extractive industries play an important role in UK industry. But it should be noted that with the simultaneous closure of mines, there is an increase in oil and gas production on the continental shelf of the North Sea. Oil production is carried out using the most advanced drilling technologies on drilling platforms. British Petroleum and the Anglo-Dutch company Royal Dutch/Shell are among the leaders in their market segment. In the manufacturing industry, the following sectors enjoy priority:
Transport engineering (12.4% of the total industrial
production), where the automotive industry stands out
(national companies and branches of foreign companies
Rover, Ford, Jaguar, Vauxhall, Pegeout-Talbot, Honda, Nissan,
Toyota), shipbuilding (including shipbuilding
equipment and construction of drilling platforms), aerospace
The medical industry is the third largest in the world after the USA and
France, producing civil and military aircraft
(British Aerospace, Harrier, Tornado, Euro fighter), helicopters "Si-
King and Linco, Rolls-Royce aircraft engines, equipment
for the European concern Airbus Industry;
Food industry (12.5% of total production
stva), including the production of the famous Scottish whisk
ki, gin and milk;
General engineering: agricultural production
natural machinery and machine tools, including the production of textiles
equipment (Great Britain - the seventh in the world
manufacturer in the world of machine tools);
Electronics and electrical engineering: computers (including
manufacturers such as IBM and Compaq); software obes
baking; processors and supercomputers; telecom facilities
communications (fiber optics, radars, etc.); medical
equipment; Appliances;
Chemical industry (11% of total
industry): pharmaceuticals (Great Britain - the fourth in the world
drug manufacturer) agrochemistry; perfumery; new ma
materials and biotechnologies;
Metal production (10.8% of total production);
Pulp and paper industry.
The development of modern UK industry
determined by the level of development of high technologies. Great Britain has the highest scientific and technical potential in Europe. Great Britain ranks second in the world after the United States in terms of the number of Nobel Prizes received by its scientists. The most important discoveries of the British are the structure of DNA, superconductivity, radio astrophysics, cloning, the ozone hole, and computed tomography. The global dominance of the UK in electronics and telecommunications (British Telecom alone carries out about a thousand research discoveries a year), chemistry (pharmaceuticals, new materials, biotechnologies), aerospace industry (Coneord aircraft, vertical take-off and landing aircraft, radars, tracking systems) is generally recognized. for air traffic)
Expenses for scientific research discoveries amount to over 2% of GDP per year, including over 35% of all research discoveries financed by the state. The construction industry in Great Britain has proven itself highly in the world. world recognition High Quality The constructions of the British are served by the fact that the Eurodisneyland near Paris, the Olympic facilities in Atlanta, the airport in Hong Kong were built by British firms.
The service sector is represented by industries such as finance and tourism. 25% of the country's GDP is generated by the financial services sector. It employs 12% of the country's labor reserves, and London is the world's financial center, the financial capital of the planet. Among financial services, it is worth highlighting banking (in addition to British banks, 50 largest banks in the world are represented in London), insurance, the market for derivative financial instruments (futures, options, global depositary receipts), the bond market (eurobonds), the foreign exchange market (transactions with eurocurrencies), financial leasing, trust transactions with foreign shares, transactions with precious metals. In addition to London, major financial centers are Manchester, Cardiff, Liverpool, Edinburgh. The second most important branch of the service sector is tourism, 7% of the working population is employed here, and the annual income exceeds $ 8 billion. London is the largest tourist center in the world.
The private sector, represented by British Petroleum, Shell, British Gas, British Oil, and Enterprise Oil, plays an important role in the country's energy sector.
Agriculture in the UK is highly commercial, while its share in the country's GDP is the smallest among developed countries, only Germany is smaller. The UK is half self-sufficient in food. The main agricultural crops are wheat, oats, sugar beet, barley, wheat. The country's livestock sector suffered significant damage due to an epidemic of spongiform encephalitis (“mad cow disease!”) That struck cattle. For safety reasons, one third of the cow population was destroyed
Great Britain, like all leading countries of the world, has a developed transport infrastructure. The opening of the Eurotunnel under the English Channel made the UK's connection with the continent even more stable. The success of the country in the development of civil aviation is indicative. British Airways is by far the largest airline in the world (if you count its share in foreign companies and English companies), and London's Heathrow Airport is the largest aviation harbor in the world.
The largest ports of the country: Aberdeen, Belfast, Bristol, Cardiff, Dover, Glasgow, Hull, Liverpool, London, Manchester, Plymouth, Peterhead, Scapa Flow, Southampton, Falmouth, Tees, Tyne. The UK merchant fleet consists of 155 ships (1998).
Exports consist of: manufactured goods, fuels, chemical products, foodstuffs.
Export geography: EU countries - 56% (Germany - 12%, France - 10%, the Netherlands - 8%), USA - 12%.
Imports consisted of: industrial goods, engineering products, food.
Import geography: EU countries - 53% (Germany - 14%, France - 10%, the Netherlands - 7%, Ireland - 5%), USA - 13%.
The monetary unit is the pound sterling (100 pence).
Oscar Wilde
It is known that...
45% of non-whites live in London (78% black Africans, 61% black Caribbeans, 54% Bangladeshis). Pakistanis: 19% London, 21% Western Highlands, 20% Yorkshire, 16% North West. The resettlement of the non-white population: England - 9%, Wales, Scotland - 2%, North. Ireland - less than 1%, Highlands - 13%, South East and North West - 8%, Yorkshire and the Humber - 7%
Also...
The English inhabit England, most of Wales and form compact settlements in some areas in the south of Scotland. The Scots inhabit mainly the northwestern regions of the island of Great Britain and the Shetland, Orkney and Hebrides Islands adjacent to their coast. In the mountains of the northwestern part of the island, a peculiar ethnic group lives, preserving its original traditions and culture - the Gaels (highlanders). Welsh - Inhabit Wales.
Sev. Ireland: 500 thousand indigenous inhabitants of the island - the Irish - Catholics, 1 million Anglo-Irish and Scotch-Irish.
Population
Demographic situation
Currently, the country is characterized by low population growth - the result of both the convergence of birth and death rates, and a decrease in the balance of migration. In some years, the increase is negative (with a positive balance of migration). The problems of “nation aging” are connected with low natural growth. In 2002, persons aged 65 and over made up 15.8% of the population. The 2001 census showed that for the first time the number of people over 60 exceeded the number of children under the age of 15.
Average life expectancy: 76 years for men, 81 years for women. The birth rate (per 1,000 people) is 12.7. Mortality rate (per 1000 people) - 9.1. The average composition of a family is 2 children and parents.
Economically active population of Great Britain. In this area, there is a clear predominance of men over women. If there are 13.6 million employed men, then there are almost 2 times less women - 7.6 million. 60 years. this is due to the "aging" of the nation.
Royal guard
The Royal Guard (nicknamed "Bearskins" - "bear skins") is the personal guard of the English monarch. In our lives, there is no particular need to fear for the life of a king or queen, and today the guards perform mainly ceremonial duties. However, the traditions of the guards originated about three centuries ago, when the British monarchs really took to the battlefield. The soldiers in the guards regiments were selected very strictly, these were the best parts.
The British Guards Division today consists of two mounted and five infantry regiments. The cavalry is the Life Guards Cavalry Regiment (its uniform is red uniforms, and in winter also red capes) and the Royal Horse Guards Regiment - in blue uniforms and blue capes. Her Majesty's Foot Guards - Coldstream, Grenadier, Scottish, Irish and Welsh. All infantry guardsmen wear high bearskin hats and red coats. That is, it is not easy to distinguish the soldiers of one or another regiment from each other - except perhaps by the location of the buttons on the uniform and the color of the cockade on the cap.
The famous caps of the guards are made from the fur of the North American grizzly bear. The officers' caps are taller and more shiny. The fact is that they are made from the fur of a male, and the caps of privates and non-commissioned officers are made from the fur of a female grizzly (it does not look so impressive).
Odessa National University. I. I. Mechnikova
Institute of Mathematics of Economics and Mechanics
Economic theory
Individual task
on economics of foreign countries
on the topic:
"Analysis of the dynamics of economic development
Great Britain 1990-2007”
- Plan
- Introduction 3
- General characteristics of the economy 4
- Main sectors of the economy 10
- Foreign economic relations 15
- Conclusion 17
- Annex 1 19
- References 20
1. Introduction
Great Britain today is a country with a highly developed, strong and independent economy.
The recovery of the British economy after the Second World War took almost forty years. In addition to domestic resources, the recovery process was spurred on by the UK's accession to the European Community in 1973, which contributed to the rise of the country's competitiveness. Now the UK is in the forefront among developed countries in terms of production growth, productivity and competitiveness.
The 1980s saw a large-scale privatization of state-owned enterprises that had been nationalized in previous years. The average standard of living has also risen, although there are still divisions between the more prosperous territories of the south-eastern part of the country, including London, and the less wealthy territories of the west and north. Unemployment and inflation levels were gradually reduced, but remained quite high. The country played the role of a world financial leader, which, along with the discovery of natural gas and oil in the North Sea, reduced the dependence of the economy on more traditional sources of energy and significantly improved the country's domestic economy and government economic policy.
2. General characteristics of the economy
The United Kingdom of Great Britain and Northern Ireland consists of four major territories: England, Scotland, Wales and Northern Ireland. The area of the country is 244.1 thousand square meters. km. Great Britain is one of the most developed capitalist countries.
The island position at the intersection of international sea and air routes has created favorable conditions for the development of versatile external relations of the country. For a long time, Great Britain was the largest exporter of capital, until the middle of the 20th century. owned the largest colonies in the world.
The UK has limited reserves of natural resources. The main minerals are oil, gas, coal, limestone, etc. But in terms of energy resources, it has the largest reserves in the EU: more than 270 thousand tons of oil are produced annually. According to experts, oil reserves are about 6000 million tons, gas reserves are estimated at about 3.5 trillion. cube m.
The UK GDP is about 1.5 trillion dollars, and the per capita income is about 26-27 thousand dollars a year.
Today the UK is highly developed industrial country and occupies an important place in the world economy. It ranks ninth in the world and fourth or fifth in Western Europe in terms of GDP, and ranks fifth in the world in terms of industrial production. It accounts for 4.2% of total GDP and 1% of the world's population (58 million people). The working-age population makes up almost half of the total UK population. In terms of industrial production, the UK ranks fifth among advanced economies. In terms of foreign investment, the UK ranks second in the world.
The main features of the UK economy are independence, integration into the world economic system, and a moderate level of development.
In our time, Great Britain is one of the largest powers, has a serious influence on the development of international economic and political relations.
The development of the UK economy
Modern features of the structure of the UK economy bear the imprint of the specific features of the development of its economy at different historical stages.
In Great Britain, more intensively than in other countries, there was a process of initial accumulation of capital. In the XVII-XIX centuries. the country actively participated in world trade, had the world's largest fleet, created the largest colonial empire. Already by the middle of the XIX century. it has become a world banker, its share in world industrial output has exceeded 1/2. But in the last quarter of the XIX century. Great Britain lagged behind the United States and Germany in terms of industrial development, and after the First World War became a debtor to the United States.
After World War II, the country's position in the world economy continued to weaken. This was aggravated by the collapse of the colonial empire, although Great Britain managed to maintain economic ties with the former colonies and dominions, forming the Commonwealth.
In the late 1940s and early 1950s, the state took a number of measures to improve the situation in the economy. So, some old industries and industries serving the entire economy were nationalized (coal, ferrous metallurgy, gas, electric power; railway, inland water and air transport, radio and television, as well as the Bank of England); the technical modernization of old industries began.
The state also stimulated the development of new, promising sectors of economic development - automotive, aviation, electrical engineering, and the nuclear industry. In the following decades, in the nationalized industries, there were processes of concentration of capital and monopolization of production, the formation of state-monopoly associations. Massive development of oil and gas fields began.
However, the UK continued to lag behind other leading countries of the world in many economic indicators, including the rate of production growth, the level of labor productivity in industry. Among the reasons are the lack of a fundamental technical reconstruction of the economy, while significant funds were still exported abroad or went to the military sector; the inconsistency of state policy towards industry, the old methods of organizing and managing production also had a negative impact.
In 1973 Great Britain joined the EEC. In terms of time, this almost coincided with the beginning of a series of global economic and structural crises (70-80s), which had a particularly hard effect in the UK, where in some years the unemployment rate exceeded 11%. On the whole, during the 1980s and 1990s, the situation in the UK economy improved, and its lag in growth rates from its main competitors in the capitalist world was largely overcome.
Today, Great Britain is a highly developed industrial power, occupying one of the leading places in the world in terms of industrial production and research and development costs. Major exporter of capital. GDP in 2004 - 1.782 trillion. Doll.; the country's budget in 2004: revenues - 834.9 billion dollars; expenditure part - 896.7 billion dollars; industrial production growth - 0.9%.
Relatively stable position in the economy promotes investment activity in the country. The total volume of accumulated investments amounted to 4.1 trillion. pounds (late 2004). American, Japanese, Canadian, French and German companies remain among the main investors in the British economy.
Model of economic development.
The main feature of the country's macroeconomic development is that the UK has chosen a neoliberal, "Anglo-Saxon" model of development. This model has been functioning since 1979 since the reign of Margaret Thatcher. "Thatcherism" suggests neoconservative reforms in the economy. It is characterized by the predominance of free private enterprise (more than 80% of total production). The private sector provides over 75% of all jobs. The policy of the British government is aimed at creating the most favorable opportunities for the development of private business. However, with a general increase in the living standards of the population in the country, there is a significant polarization of income, when 10% of the population owns 54% of the national wealth. Support for the market mechanism is carried out with the help of: privatization of state property, deregulation - reducing government intervention and reducing government reforms, tax reforms.
After the Laborites came to power in the 1990s, the economic policy of the state is aimed at combining the free market with some regulation of the economy, but without unnecessary regulation from the state.
The social and economic policy of the Laborites, on the one hand, is purely pragmatic and in a number of areas continues the course of its predecessors (M. Thatcher), on the other hand, it reflects the principles of new laborism: a combination of the social values of old laborism with the development of a market economy. In the late 1990s Labor delegated a number of economic management functions to regional authorities. At the same time, market principles are being introduced into the activities of the public sector, privatization of public works and services is being carried out, and the participation of the private sector in solving social problems is expanding.
Deregulation of the economy has become an important direction of economic policy. Many administrative and legal restrictions on business activities were lifted; simplified regulatory procedures. Controls over wages, prices and dividends have been abolished; the labor market has undergone significant deregulation. This policy covered the banking, credit and currency spheres.
Banking system
In terms of concentration of banking capital, the UK has always been one of the first places in the world. Among English commercial banks, for many years the leading role was played by the powerful "Big Five" of London banks: Barclays Bank, Lloyds Bank, Midland Bank, National Bank, Westminster Bank. In 1968, there were mergers within the "big five" - the last two banks merged, which led to an even greater concentration of the country's banking power. The Big Four now account for 92% of all deposits in UK commercial banks.
In the UK, several largest financial groups can be distinguished that control most of the economy - industry, trade, the credit system, etc. The largest financial groups in the UK are approaching in their power the largest financial groups in the United States, and in some industries have even overtaken them. A feature of the financial capital of Great Britain is its wide international connections. Thus, the Morgan-Grenfell banking house is associated with the American financial group Morgan, the Rothschild-Oppenheimer groups, the Anglo-Dutch companies Royal Dutch-Shell and Unilever are international.
Although British banks do not play that role today in financial markets and capital markets, which belonged to them for many decades of the 20th century, London remains the largest financial center after New York. In terms of turnover in the international money and capital markets, it holds the leading position in the world, having the most efficient money market infrastructure in Europe. London ranks first in terms of the number of foreign banks operating here. Here is the 3rd largest stock exchange in the world in terms of operations (after New York and Tokyo). The London capital market accounts for up to 60% of world trade in foreign shares.
In order to comprehensively assess the benefits and costs of the UK's participation in the euro area, the Ministry of Finance has developed and began to put into practice a special methodology of "five economic tests" to study the goals, conditions and possible consequences of joining the country to the euro area.
3. Main sectors of the economy
A characteristic feature of the UK economy is its high degree of internationalization. Over 18% of its GDP is sold abroad, and the import quota exceeds 20%. Great Britain, which in the last century became the “center” of the international division of labor, is characterized by intra-industry specialization with a wide development of detailed and complex technological specialization. Although there are no sharp regional contrasts in the level of development in the country, 10 economic regions are distinguished in it according to the degree of development of productive forces and industrial specialization, features of the formation of the economy, the predominance of established territorial and production relations: South-East (metropolitan), West Midland, East Midland, Lancashire, Yorkshire, North East, North West, Wales, Scotland, Northern Ireland.
The most developed industry is the service sector. This industry employs 71% of the population and its share in GDP is 66.8%. The share of industry is 31%, and agriculture - 1.8% of GDP.
Industry
Characteristic of the post-war development of the British economy was the increase in the share mechanical engineering in the sectoral structure of industry, the rapid development of its new and emerging industries. The production of electrical equipment and computers is growing, instrument making, aviation and aerospace industries are actively developing. The share of knowledge-intensive industries is growing. At the same time, there is a decrease in the share of old industries - shipbuilding and machine tool building, production of railway equipment, etc.
At present, the role chemical industry. The most rapidly growing production of plastics, petrochemistry, synthetic materials. But despite all this, Great Britain lags behind other Western countries (USA, Japan, Germany) in the production of many types of chemical products.
There have been changes in energy. In the postwar years, this industry has become one of the fastest growing. Energy development was strongly influenced by the discovery of its own oil and gas fields in the North Sea, the development of which began in 1967, which put the UK in a relatively favorable position compared to other countries during the energy crisis of the 70s.
Now, in the conditions sharp drop world oil prices, ahead of the English oil industry a new problem arises, since oil production in the North Sea is more expensive than in most other countries. Nuclear power takes a more modest place in the UK than in France and Germany - only 20% of all electricity is produced at nuclear power plants.
coal industry is now in decline. Despite the nationalization of the industry and its reconstruction, after the war, the level of coal production grew at a slow pace, then kept at the same level, then began to decline. Such a drop is associated with an increase in the share of oil, gas and nuclear energy in the country's fuel and energy balance.
Successfully developing food industry. Significantly reduced share light industry. From industries textile industry the production of knitwear and artificial fibers is increasing. The main reasons for the crisis in the textile industry are the aggravation of the problem of sales in the domestic and foreign markets.
Agriculture
Recently, UK agriculture has reduced its position in the production of GDP, but nevertheless it covers most of the country's food needs, is characterized by high productivity and intensity.
Great Britain is a classical land of agricultural capitalism. Its agrarian relations are characterized by the presence of three classes: hired agricultural workers, capitalists (farmers) and landowners (landlords). A significant part of the land is owned by landlords, who themselves do not engage in agricultural production, but lease the land. With the transfer of land directly into the ownership of farmers, the importance of landlordism is reduced. In England, more than 70%, and in Scotland over 90% of agricultural land is in the hands of large farmers, whose farms exceed 60 hectares each. In England there are 27% of such farms, in Wales - 23%, in Scotland - 30%, in Northern Ireland - 18%. It is these farms that provide the main marketable products. On the whole, however, farmers with less than 16 hectares cultivated dominate. The largest farms (over 140 hectares) occupy half of all arable land and produce more than half of agricultural products.
A characteristic feature of the development of agriculture in Great Britain is the growth in the concentration of agricultural capital, the increased penetration of monopolies into this industry, and the merging of agricultural and industrial capital through vertical integration. The growth of specialization of agricultural production, its change towards industrialization led to the emergence of large companies for the production of certain types of agricultural products. This situation has developed primarily in the poultry industry.
High results have been achieved in the efficiency of agricultural production. The average wheat yield is 60-74 centners per hectare.
As a result of the intensification of production, the country has significantly increased the degree of self-sufficiency in products, bringing it today to 80% (in 1980 - 74%). For a whole range of products - wheat, meat, potatoes, milk, meat, vegetables - the country satisfies the demand in the domestic market.
An important role in the development of agriculture was played by the state, which allocated significant funds to increase the competitiveness of the agricultural sector. A policy of accelerated concentration of enterprises was proclaimed through the merger of insufficiently large farms, the liquidation of the smallest unviable farms, and the accelerated development of cooperation in agriculture.
Agricultural production is growing at an average of 3% per year. This is the largest increase among advanced economies.
The main branch of agriculture in the UK is livestock, which makes up about 70% of all its products. Forage crops (beets, barley, oats) occupy a significant place in crop production. In recent years, wheat production has increased, as a result of which domestic needs for it are almost completely satisfied.
In the 80s. there was a reduction in sown areas, the growth of gross crop yields was achieved by increasing yields as a result of the use of a significant amount of fertilizers and good tillage.
The level of mechanization of agricultural work in the UK is quite high. However, extensive mechanization is available mainly to large farmers, who thus achieve a reduction in production costs, primarily saving on labor.
Great Britain has made significant progress in improving the production apparatus, significant structural changes have taken place in its economy. These changes are mainly related to the increasing importance of the non-productive sphere.
Services sector
The service sector provides 66.8% of GDP, employs 71% of the workforce, and credit institutions play a leading role here. London banks account for about 20% of international lending, the UK is home to the world's largest insurance industry (1/5 of the world market).
The most remarkable phenomenon that characterizes the UK economy has been the growth of the service sector. It reflects the increase in real incomes of the population, as well as the ratio between spending on goods and services. Representatives of the financial sector and the entertainment and tourism sector especially benefited. While some services, such as public transport, laundries and cinemas, have lost revenue per share due to a shift towards their own goods such as cars, washing machines and televisions, this has helped develop service sectors that sell and repair these items. Other service sectors that saw increased demand include hotels, tourism, retail, finance and leisure. Numerous other sectors that previously held little or no market share have become much more significant. They include the production of computers and software, advertising, market research, exhibitions, presentations and conferences. Recently, the UK has also been actively developing the sector of teaching foreign languages, especially English, secondary and higher education, attracting foreign students.
4. Foreign economic relations
The export of capital is one of the most important forms of foreign economic relations for Great Britain. In terms of foreign direct investment, the country ranks third in the world after the United States and Japan, while profits from the export of capital are twice as high as merchandise exports.
The main areas for investing English capital abroad are the manufacturing industry (more than 50% of investments), the oil industry (more than 20%), banking and insurance. AT last years the acquisition of real estate abroad, in particular in France, has intensified. In 2003, foreigners, mostly British, invested $10.3 billion in French real estate (15% of house purchases outside major cities).
Great Britain itself has now become an object of investment of foreign capital, chiefly by the monopolies of the USA and Western European countries, while the share of Japan is rapidly increasing. Capital is invested in the most advanced industries and oil production. Nearly 40% of FDI is controlled by US corporations.
Trade in recent years has been growing faster than the economy as a whole. In 2001, the share of wholesale and retail trade in GDP was 12.2%. There are 107 wholesale trade enterprises in the country, employing 1.18 million people. The number of retail trade enterprises exceeds 192 thousand. They employ 2.87 million people. (11% of all employed in the country). The turnover of large trading companies with a wide network of shops and supermarkets is growing at the highest rate. The importance of trade, in which orders are made by mail and via the Internet, is increasing.
The role of foreign trade in the country's economy is great: it exports about 1/4 of its products.
In the structure of imports, the share of food and raw materials has sharply decreased (due to the growth of self-sufficiency in food, a decrease in the material intensity of products, a decrease in oil imports, etc.), while the share of finished products has increased four times, to almost 80% (due to the deepening of specialization in the global economy, and a decrease in the competitiveness of a number of British goods).
Traditionally, the bulk of British exports are manufactured goods (approximately 40% of all exports are engineering products, including automatic machine tools, aircraft engines, vehicles, instruments), as well as chemical products. One of the most important changes in the UK's export specialization is its transformation from a coal exporter to a net oil exporter. The country provides about 1/5 of the world's exports of alcoholic beverages (mainly Scotch whisky).
Approximately 80% of all British capital exports go to advanced economies, mainly to Germany and France. At the same time, the volume of Britain's economic ties with third world countries (foreign trade and export of capital) is relatively large.
The largest trading partners of the UK: Germany, USA, France, the Netherlands. The share of EU countries accounts for more than 50% of British exports and imports. Great Britain is one of the five largest partners of Russia (the trade turnover between both parties in 2005 amounted to 9.27 billion pounds). In terms of accumulated foreign investment in the Russian economy in 2004, it ranks fifth after the Netherlands, Luxembourg, Cyprus and Germany.
In 2004, imports amounted to 439.4 billion dollars. The main import items are manufactured goods, machinery, various types of fuel, food. The largest import partners - Germany (13.5%), USA (10.2%), France (8.1%), Netherlands (6.3%), Italy (4.7%) - 2003
5. Conclusion
The peculiarity of the British economy and its position in the world economy reflects the peculiarities of the country's development in the past century.
The evolution of the world positions of Great Britain at the end of the 20th century. cannot be understood without taking into account the differences in interests between different groups of big business. One of the features of economic development that go deep into history is a certain alienation between industrial and banking capital that persisted for a long time. The former monopoly position of the country in the world market contributed to the fact that the industry did not feel the need for large borrowed funds.
For a long time, the activity of a powerful coalition of colonial commodity companies and financial institutions of the City had a retarding effect on the development of the economy. As industrial TNCs strengthened, relying primarily on the export of capital, there was a demarcation of interests in industrial circles as well. The most influential part of them increasingly identified their interests not with national, but with foreign production.
All these circumstances largely led to lower economic growth compared to other developed countries, slow qualitative structural changes in the economy in general and industry in particular.
In the 1980s and 1990s, the economic management mechanism underwent significant changes. First of all, there was its significant decentralization. Britain under the Conservatives pioneered large-scale privatization in the West. At the end of the last decade, Labor transferred a number of economic management functions to regional authorities in Scotland and Wales. Both Conservative and Labor governments actively introduced market principles into the activities of the public sector, carried out the privatization of public works and services, and expanded the participation of the private sector in solving social problems.
In the XX century. Serious shifts have taken place in the structure of exports of services, in which the UK ranks second in the world, second only to the United States. The country receives its main income from the export of business services, including legal and accounting services. The consulting services of British banks in the field of privatization are in great demand. The fastest growing export of computer and information services.
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Brief economic characteristics of Great Britain
Great Britain is a highly developed industrial country, one of the top five most developed countries in the world. In terms of energy reserves, the UK ranks first in Europe and is a major producer of oil and gas
The main feature of the country's macroeconomic development is that the UK has chosen a neoliberal, "Anglo-Saxon" model of development. It is characterized by the predominance of free private enterprise (more than 80% of total production). The private sector provides over 75% of all jobs. The policy of the British government is aimed at creating the most favorable opportunities for the development of private business. However, with a general increase in the living standards of the population in the country, there is a significant polarization of income, when 10% of the population owns 54% of the national wealth.
Great Britain in the international division of labor acts as a supplier of industrial products. At the same time, the economic role of Great Britain in the modern world is determined not only by industrial, but also by banking, insurance, ship-freight and other commercial activities. About 30% of its gross national product comes from manufacturing and 45% from services, including transport and communications, retail, insurance, banks and other financial institutions, healthcare and education. The share of the service sector in the gross national product is growing much faster than the share of the manufacturing industry, which is even somewhat declining. The share of agriculture also decreased - to 3% and extractive industry - to 1.4%.
The export of industrial goods and the export of "services" for the development of the UK economy is of exceptional importance, which together give 26% of the gross national product. An important source of income for the British international monopolies has been and remains the export of capital to other countries.
With the reorientation of British industry to the latest industries, the external market began to play a greater role for its development than cheap labor. Recently, this market has been found by the British monopolies in the developed capitalist countries, whose share in the export of British capital has exceeded 3/5. The export of British capital to developing countries is still large: it accounts for almost half of the capital exported to these countries by Western European states. At the same time, the contributions of foreign monopolies to the British economy are growing rapidly.
Great Britain, having lost almost all of its colonies, has lost many economic advantages: control over the world's richest deposits - non-ferrous metals, oil, important sources of natural rubber, cheap agricultural products, guaranteed markets for manufactured goods and unlimited opportunities for the export of capital to all continents.
Being indebted to the US and its "junior" partner and taking on significant NATO expenses, Great Britain is forced to put up with the penetration of American capital into its economy, the role of which is growing every year. The money of magnates from across the ocean is invested mainly in rapidly developing modern industries. American firms produce more than half of automobiles, 3/5 of computers and the same proportion of medicines. More than half of the companies involved in oil and gas exploration in the North Sea are also American.