Britain: Changing Economic Landscape

Publication type Article
Status Published
Affiliation: Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO)
Address: Moscow, Russian Federation
Journal nameMirovaia ekonomika i mezhdunarodnye otnosheniia
EditionVolume 62 Issue 11

The author attempts to identify the factors driving shifts in the UK economic landscape. It explains the factors affecting economic growth in Britain and shows reasons behind changing trends in recent two decades. The economy of the UK was hit hard by the 2007–2009 global economic and financial crisis. As its negative consequences have diminished the emphasis in economic polices was shifting to the solution of the long- term structural problems, in particular, where Britain is lagging behind the major competitors. They are capital investment; in particular in upgrading of the infrastructure, labour productivity growth, research and development intensity. Economic policy has become mainly orientated towards the fostering of a macroeconomic environment which helped to reduce structural and regional disparities, budget deficits, debt levels, well-being inequalities. Since the UK economy is too heavily dependent on credit-fuelled consumer spending and on financial services, a shift towards more manufacturing and exports is required if a sustainable economic future is to be built. Fiscal and monetary measures should be used more efficiently to encourage businesses, including small and medium, to increase its efficiency and international competiveness. In November 2017, the government launched ambitious Industrial Strategy with a long-term plan to boost the economy, the productivity and earning power of people throughout the UK, to build on the country’s strengths and embrace the opportunities of technological change. The government intends to use this strategy to work with industry, academia and civil society over the years ahead to make more of the UK untapped potential and create a more productive economy that works for everyone across the UK. Once Britain recovered from the worst of the crippling damage done by the crisis, the economy started to tick along at a reasonable pace. Moreover, in post-crisis years Britain was among the fastest growing economies in the G7. But in 2017 it has fallen to the bottom of the table. The moderation in the economic activity of this country reflects the heightened uncertainty following the decision to leave the European Union. The UK slowdown came as GDP growth in the eurozone and the US picked up strongly. Brexit will have an important bearing on the UK economic prospects. The main challenge facing the authorities in the future is to implement it at a minimum cost. The impact of Brexit will depend on the nature of the final agreement, and it may take many years to fully materialize.

KeywordsBritain, economy, reproduction, structural changes, imbalances, economic policies, Brexit
Publication date14.12.2018
Cite   Download pdf To download PDF you should sign in
Размещенный ниже текст является ознакомительной версией и может не соответствовать печатной

views: 214

Readers community rating: votes 0

1. Russia and the World: 2018. Economy and Foreign Policy. Annual Forecast (In Russ.). Moscow, IMEMO, 2017. 176 p.

2. Economic Indicators. House of Commons Library. Briefing Paper, no. 8277. 03.04.2018. Available at: https://researchbriefings.‑8277#fullreport (accessed 24.05.2018).

3. Pocket Databank: Economic Indicators. 14.02.2018. Available at: (accessed 24.05.2018)

4. People Claiming Unemployment Benefits by Constituency. April 2018. Available at:‑8307 (accessed 24.05.2018).

5. Britain’s Era of Abysmal Productivity Growth Could Be at an End. The Economist, 12.04.2018. Available at: (accessed 24.05.2018).

6. International Comparisons of UK Productivity, Final Estimates: 2016. 06.04.2018. Available at: stimates/2016 (accessed 24.05.2018).

7. Tenreyro S. The Fall in Productivity Growth: Causes and Implications (Speech). London, Bank of England, 15.01.2018. Available at: (accessed 24.05.2018).

8. Gross Fixed Capital Formation by Sector and Asset. London, Office for National Statistics, 29.03.2018. Available at: (accessed 24.05.2018).

9. Experimental Estimates of Investment in Intangible Assets in the UK: 2015. London, Office for National Statistics, 07.02.2018. Available at: publications?size=50 (accessed 24.05.2018).

10. Gross Domestic Expenditure on Research and Development, UK: 2016. 15.03.2018. Available at: nresearchanddevelopment/2016 (accessed 24.05.2018).

11. Human Capital Estimates: 2015. London, Office for National Statistics, 18.08.2016. Available at: (accessed 24.05.2018).

12. BCG: UK Internet Economy the Largest of the G‑20. Consultancy.UK, 19.05.2015. Available at: (accessed 24.05.2018).

13. Creative Industries Sector Deal Launched. 28.03.2018. Available at: (accessed 24.05.2018).

14. Going Green: UK Sets Renewable Energy Records. Sky News, 28.12.2017. Available at:‑11187876 (accessed 24.05.2018).

15. United Kingdom – Economic Indicators – Trading Economics. Available at: (accessed 24.05.2018).

16. Bank of England. Inflation Report. May 2018. Available at:‑2018 (accessed 24.05.2018).

17. Bone J., Allen O., Haley C. Business Incubators and Accelerators: the National Picture. Available at: (accessed 24.05.2018).

Система Orphus