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The United Kingdom of Great Britain and Northern Ireland (из книги "British Studies" by V. Pavlotskiy, St.Petersburg, 1996)

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ECONOMY

From 1981 to 1989 the British economy experienced eight years of sustained growth at an annual average rate over 3%. However, subsequently Britain and other major industrialized nations were severely affected by recession. In Britain growth slowed to 0.6% in 1990, and in 1991 gross domestic product (GDP) fell by 2.3%. GDP fell in 1992 as a whole by 0.4%, but it rose slightly in the second half of the year. The recovery strengthened during the first part of 1993; with GDP in the second quarter being 2% higher than a year earlier; the European Commission expected Britain to be the fastest growing of all major European economies in 1993 and 1994.

Recent indications that the recovery is under may include:

an increase in manufacturing output;

a steady upward trend in retail sales;

increases in new car registrations;

record levels of exports;

increased business and consumer confidence; and

signs of greater activity in the housing market. The Government's policy is to ensure sustainable economic growth through low inflation and sound public finances. The Government's economic policy is set in the context of a medium-term financial strategy, which is revived each year. Within this strategy, monetary and fiscal policies are designed to defeat inflation. Short-term interest rates remain the essential instrument of monetary policy.