| The Economy of the USA and the UK Essay Good thesis writing Essay done for you
The GDP of both countries has been growing constantly except for the year when the world was facing recession, i.e. 2008 through 2009. The growth rate of both countries has been decreasing over the years, but United Kingdom in 2007 experienced a higher growth rate than the United States. The exchange rate for United States has been constant over the years while the exchange rate for United Kingdom has been increasing little by little over the years. The inflation rate of United Kingdom has been going up over the years, and, in 2008, it shot up to a high then went down, then in 2011 it shot up to its highest level. While the inflation rate of United States has been going up and down over the years, in 2009 it went down to reach its lowest point. The unemployment rate for both countries has been going up constantly; however, in 2009 it shot up to a high level in both countries and since then has been high, although, in 2011, United States unemployment rate went down by a few points. The interest rates of both countries have the same pattern: it started going up and then down, and now they are at a record low level in both countries. The trade deficit has been going down for both countries over the years.
The strengths of these two economies lie in the GDP growth rate, interest rates, and trade deficits. These two countries are doing well compared to other economic giants in Europe; countries such as Spain and Italy have bad records. The weaknesses of these two economies lie in the inflation rate coupled with the unemployment rate; we see that both of these countries are suffering in these sectors, especially, in the unemployment rate. The unemployment rate has been shooting up over the years, and this, in the end, will negate the gains that the two countries are getting from their strengths.
In conclusion, based on the analysis above, both the United Kingdom and United States have an edge over other world economies. They have put measures in place to return their countries to their former glory especially after the financial crisis that almost crippled all world economies. The measures that the governments of both countries have taken seem to improve the GDP and Growth rate. The GDP and the growth rate were not affected much by the recession, but the area of the economy that took a big hit during the recession is the unemployment sector. The unemployment rates had been increasing constantly over the years, but during and after the recession, the unemployment rates shot up, and they are not relenting.
In general, the United States unemployment rate has gone down since the recession, but its effects are still being felt. Economic policies put in place are expected to maintain the recovery and address fiscal weaknesses. The United Kingdom has some challenges in improving longer-term growth, reducing inequality, and recuperating from the recession. The UK has not yet fully recovered from the global financial crisis, but the structural reforms, currently being implemented, will boost growth.