High Consumer Spending in the UK Limits Long-Term Economic Growth : Report

Added on - 22 Jul 2020

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High Consumer Spending in the UK Limits Long-Term Economic Growth
Table of ContentsINTRODUCTION...............................................................................................................1BODY.................................................................................................................................1Factors that affect economic growth.........................................................................1Impact of high consumer spending in long term economic growth of UK.................2Recommendation to control high consumer spending for betterment of long termeconomic growth.......................................................................................................4CONCLUSION...................................................................................................................5REFERENCES..................................................................................................................6
INTRODUCTIONEconomic issues are increasing in the nation frequently, this topic is beneficial toidentify buying capacity and income status of population. By this way it can be analysedwhether country is developed or under developed. (EMMONS. W. R, 2012) Thisinvestigation will give overview of the future of the region so that government can takenecessary actions on time and can make economic position stronger.High consumer spending is appropriate for current situation but for long run it isnot that much effective. It can increase demand and can reduce supply. This imbalancewill create huge trouble in future for the region. That can create problems like shortageof funds and other issues, that would hinder the economic growth of the country.Highconsumer spending in the UK limits long-term economic growth is completelyacceptable statement (BRITISH CHAMBERS OF COMMERCE,2017).Consumers are the backbone of every organization; their spending not onlyassist in increasing profitability of entity but also it impacts on long term economicgrowth of the country.Falling employment rates, reducing value of currency, inflationetc. are the biggest threats to the UK’s economy . Present report will discuss extent towhich high consumer spending in UK limits long term economic growth (The DeloitteConsumer Tracker Q1 2017, 2017).BODYFactors that affect economic growthAccording toGILES, (2017), there are many factors that affect economicdevelopment of region. One of the major cause is aggregate demand (AD) (Monthlyeconomic commentary, 2017). If demand gets enhanced then supplysothen it maycause trouble for the organization because it will affect the manufacturing sectortothefirms. Political instability is another major element that may affect economic ontogeny ofUK to a great extent (Factors affecting economic growth,2011). For instance, if politicalparties get changed frequently then it will impact development of the nation. Thisinstability may be negative for the country. As per the view ofEMMONS, (2012)Increment in aggregate supply is another cause that impact on economic growth ofcountry. Author has explained that if production capacity of the region is not good and1
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