The global economic crisis, beginning in the global financial sector in 2008 and subsequently spreading across other economic sectors, has forced dramatic structural economic changes in the United Kingdom. Many countries remain depressed by the slow recovery of global demand, and the caution of companies and consumers.
It does appear, though, that the United Kingdom is recovering fast, due in large part to the decisive actions of successive British governments to tackle the crisis, and the flexibility and attractiveness to global investors of the British economy. A few positive statistics:
– unemployment is falling. The rate in the United Kingdom is currently 7.7% of the work force, still too high, but amongst the lowest in the G7 and well below the US and Eurozone averages.
– economic growth is picking up sharply, with 2% growth expected in 2011 (not spectacular against emerging economy standards, but extremely respectable against developed economy averages) and strong medium term prospects.
– the UK trade and current account deficits are narrowing, and services and manufacturing sectors both showing positive economic activity heading in to the final quarter of 2010.
Perhaps more importantlyn for longer term prospects: the recent World Bank / International Finance Corporation “Doing Business” index ranked the United Kingdom the best in Europe and 4th best country in the world – top of all the major global economies – for establishing and doing business.
We have heard a lot of depressing news over the last three years about the global economy. But these statistics suggest that we can start to be cautiously optimistic. And as the “Doing Business” survey shows, there can be no better moment to invest and do business in the United Kingdom.