Despite so much attention being focussed on the UK’s economic woes by the media, public and politicians, there is not much that can be done whilst the global financial situation remains what it is. That’s why so many people are looking to the big players, particularly China, the US and the EU, to start creating large amounts of growth and pushing a worldwide recovery.
Unfortunately, that seems even more unlikely now as China’s manufacturing sector has reported that it has remained in recession for the 11th straight month. This is whilst the US and Europe are both struggling with their own industry. Without the big economic powerhouses creating work that requires resources, services and demand from the rest of the world, international trade grinds to a halt and the global economy starts to wind down.
This is exactly the situation that nations found themselves in in 2008, so it’s unsurprising that people are getting worried once again. For those in the UK looking to improve the country’s economy, it presents some very real difficulties. Whilst there is potential for domestic growth, it’s the increase in worldwide trade that has fuelled the wealth creation seen for the last few decades. As the countries which fuelled that growth fail to kickstart the global economy back into action, the nations that benefitted from it in the first place suffer.
This failure across the world is one of the reasons that, despite pushes by people and groups within the UK, the economy is saying stagnant. The change to stop relying on outside factors is enormous, and one which would take real and long term commitment from politicians. However, making arguments like this is essentially admitting that the UK government cannot do anything in the short term, and so they are unpopular with voters.
Until governments are not judged more on the interest and borrowing rates that are available under their tenure than their long term plans, problems like this will continue to arise.