International Economy Analysis Report

Running head: INTERNATIONAL ECONOMY
International Economy
Name of the Student
Name of the University
Student ID

INTERNATIONAL ECONOMY1
Table of Contents
Introduction......................................................................................................................................2
Economic condition of the UK........................................................................................................2
Policy solutions................................................................................................................................3
Fiscal policy.................................................................................................................................3
Monetary Policy...........................................................................................................................5
Conclusion.......................................................................................................................................6
Reference.........................................................................................................................................8

INTERNATIONAL ECONOMY2
Introduction
The UK is of one of the developed countries in the World. The GDP value of the country
in 2019 was $ 2.9 trillion (Ons.gov.uk. 2020). The country is suffering from the economic
slowdown since 2014. It is evident from the GDP annual growth rate which is currently below
1.5%. The GDP annual growth rate of the country exhibits a declining trend. Hence, the country
needs effective stimulus to boost its economy. The report focuses on the possible policies that the
government can implement with an aim to impact the country’s economy effectively. The
policies that are able to stimulate economy are monetary policies and fiscal policies. However,
the concern is which type of monetary and fiscal policy should the government use such that the
economy experiences increased growth. Hence, the report aims to study the suitable policies
options available to the government of the UK to stimulate its economy.
Economic condition of the UK
The major three indicators of economic health are GDP growth rate, inflation and
unemployment rate. Looking into this factors would help to understand the economic scenario of
the country. Thus, to evaluate the economic situation of the country considering the historical
data of the GDP annual growth rate to identify the suitable economic policies that the
government of the country can take.
From figure 1, it is evident that the GDP growth rate of the country is declining since
2014. Continuous declining of the GDP growth rate has may push the country into recession.
The GDP annual growth rate of the country is falling 1.5%. Thus, it can be inferred that the
economy of the country is decelerating and it needs effective policy solution to stimulate the
economy.