How can the UK sustain growth Essay Example | Topics and Well Written Essays - 2000 words

How can the UK sustain growth - Essay Example Industry development is also termed as a significant determinant of sustainable growth in the national level (WRAP, 2010). With this concern, the UK government has been focused on increasing its industrial outputs, on the verge of facing the risk of recessionary effects in the aftershock of the recent financial turmoil. As a result, the economy was able to obtain a substantial rise in its overall industrial output which led to the predictions that the economy might have been successful in mitigating the recessionary risks by a substantial extent. However, UK’s industrial output suddenly fell in the fourth quarter of 2013 which made the volatile situation faced by the economy more apparent to world traders (BBC, 2013). This further have raised the question that whether UK can sustain its growth in the future and if it can, then how. The discussion in this paper will emphasise on addressing this particular question following the assessment of the current economic situation witne ssed in the UK. Exposition According to the article published in BBC (2013), with the title â€Å"UK industrial output rose 1.1% in December† reveals an apparent account of UK’s industrial performance in relation to its output generation. It is worth mentioning in this context that the sustainable growth of UK has been significantly influenced by its industrial, economic and production outputs over the years which has today, contributed to its recessionary risks. The data illustrated through this report states that the industrial output in the UK had increased by 1.1% in December 2012 as per the report of Office for National Statistics. The rise in the aggregated industrial output observed in December 2012 was constituted with the steeply increased production of the manufacturing sector by 1.6% after accounting a fall of 0.3% in the month of November 2012. Outputs generated from the energy production and mining sector also increased by 0.9% in the same period which was further denoted to be highe r than the predictions made by analysts. Observing these hikes in the industrial output of the UK, various analysts affirmed that this level of development will enhance the potentialities of the economy to avoid future recessionary situations which was previously forecasted to be quite high in the aftermath of the 2008 recent financial crisis. However, UK’s industrial output depicted a sudden fall on the premise that UK has been successful in avoiding probable chances of recession. To be specific, industrial output declined by 1.9% in the fourth quarter of the financial year 2012-2013 which was further revealed to be a record fall in comparison to the output obtained in the third quarter of the same fiscal year. The major reason identified to act behind this huge fall in industry outputs have been the temporary shutdowns of oilfields in North Sea. However, possible chances were identified with concern to the rises in the energy production of UK’s North Sea energy produ ction sector which could contribute towards the sustainable growth of UK even though no firm evidences were provided towards justifying this particular assumption (BBC, 2013; Office for National Statistics, 2012). Notably, it was the cause of these recessionary effects that the Gross Domestic Product (GDP) of the UK fell to 0.3% which depicted that the industry growth policies enforced by the government had certainly failed which is required to be further reconsidered in order to avoid the high risks of triple-dip recession (Inman, 2013). Source: (Inman, 2013) Key Themes The key themes of the article published in BBC (2013) represent the overall scenario of UK’s sustainable development in terms of industrial production increases which in turn imposes a strong influence on the sustenance of the UK economy with the prevailing