Business Economics Essay Example | Topics and Well Written Essays - 2500 words - 2

Business Economics - Essay Example Reduced investment and poor image of the sector is put in the backseat without fresh blood in the segment. The industry must get competitive edge by manufacturing those goods that consumers want and Britain has technical and competitive advantages. Manufacturing in Britain is still important. There is a need to keep the economy diversified, that can not be possible without manufacturing. UK requires shifting into more high-tech manufacturing which is less labour intensive UK economic scenario can be viewed from this chart and diagram, which clearly points about the falling gross domestic products every decade from the Second World War when the UK economy boomed (Hundred years of Economic statistics, World Economic Outlook) The boom of the new century ended in 2008 when UK entered a recession caused by the global financial crisis following the collapse of the UK Northern Rock Bank. British economy shrunk by 2.4% in the first quarter of 2009 compared with the previous one as reported by the British Office for National Statistics (ONS). According to the ONS, "output of the production industries fell 5.1 percent, while service industries fell by 1.6 percent, with negative growth in all sub-industries except government and other services." (British economy shrinks 2.4 %-----) Britain is still reputedly the sixth biggest global manufacturing economy. The UK manufacturing sector is currently in recession and last year recorded its largest annual decline for a decade. The manufacturing sector had witnessed the boom in 1995 when it touched almost 8% growth and then moved in between 0 to 2% growth level. After touching more that 2% in 2007 the manufacturing shrunk below in 2008. Services account for 80% of Britain’s G.D.P. Service industry is not entirely independent and depends very much over manufacturing sector only. The UKs services industry as seen as the engine of growth for the national economy does not appear convincing. There is puzzling question in