CHUKUS (UK): Ch. 8 Economy (Modern; policies; institutions; workforce)

After a rise in the 1990s, Britain experienced mixed effects from a global economic downturn. Manufacturing was in recession, other sectors were weakened. Consumer spending boosted economy, but confidence was low. Unemployment rose again (after falling since 1993), while interest rates and inflation were low. Britain avoided worst and had above-average economy in 2002. Forecasts were scaled back by 2005: heavy government spendings, dropping profits, increased prices, rising inflation, unemployment and interest rates, decline in consumer confidence. Between 2007-2010, economy weakened. Credit crunch, crisis-ridden banks led to worst global recession since Great Depression (1929). Individuals contributed by taking large loans and debts they could not repay. British system rescued by Labour government, but a big cost: Budget deficit (income-spending) was 178m pounds and measures did not help much: deficit at 80m in 2014. IMF reported that Britain would grow faster than any other G7-nation, but it faced deflation in 2015. It was the 6th largest economy in 2015 and a significant industrial and manufacturing country.