The new economy stimulate plan
Under this background, 6 May 2010, the United Kingdom general election of 2010 got the result, Conservative Party became the first party in parliament and they made a coalition with liberal democrat which led by Nick Clegg. David Cameron, the leader of Conservative Party assumed the prime minister in UK. On 22 June, 2010 Chancellor George Osborne announced the first Budget based on the Government’s values of responsibility, freedom and fairness20. In this plan, the urgent target is to fix the unbalance UK economy, but most debatable provision is VAT rate will rise from 17.5% to 20% from January 4, 2011, although the intention of Conservative is increase the revenue20. On the contrary, it represent that British people need to pay more tax than before, and the UK commodity will lose competitiveness as well, because the higher price. In other part like council tax and capital gain tax both have different growth rate; however, in the government spending like child benefit and house benefit will decrease in the next 5 years21. As mentioned above, the new allied government eager to pull out the fragile UK economy from serious fiscal deficit mud. I can’t and want not to say who will obtain benefit from this budget, but one thing I can define are British people will spend an arduous 5 year. As Baroness Williams said: We're in 'one hell of a mess’.
Summary of the Budget policy decisions
A summary of the fiscal impact of Budget policy decisions is set out in the table below
The current situation of global economy
The global economy is suffering a recession ordeal that began in the United States in December, 200724. Due to the current world economy system, this recession spread to much of the industrialized world, and has caused a announced deceleration of economic activity. This global recession has been taking place in an economic environment identified by various imbalances and was sparked by the outbreak of the financial crisis of 2007–2010.
Compare the last worldwide recession in 1930s, nowadays, the connection between each country or economy union are more tight, the mutual cooperations are more frequent. so when US occurred sub-prime crisis, it lead to the worldwide economic panic. Certain countries were vastly affected more than others. By measuring security market decline, currency devaluation, and the rise in sovereign bond spreads, Carnegie Endowment for International Peace reports in its International Economics Bulletin that Ukraine, as well as Argentina and Jamaica, are the countries most deeply affected by the crisis.
GDP comparison
Generally, GDP is widely used to measure the economy development. Compare growth rate in 2007 and in 2009, all the important economy unions slipped down in certain level. Among these, severely affected countries are Russia, United States and United Kingdom. GDP growth rate in Russia from 5.18% in 2007 fell to -7.9% in 2009, US (4.17% in 2007, -2.4% in 2009), UK (5.82% in 2007, -4.8% in 2009), Japan (2.0% in 2007, -5.3% in 2009), Germany (3.72% in 2007, -5% in 2009). By contrast, China (12.37% in 2007, 8.7% in 2009), India ( 5.71% in 2007, 6.5% in 2009), and Brazil ( 4.58% in 2007, -0.2% in 2009) are "among the least affected. "
Unemployment rate
International Labour Organization (ILO) predicted, as the economy recession, there are over 200 million unemployment in the worldwide bringing by the financial crisis. Unemployment rate in advanced country is more severe than developing country. According to the Central Intelligence Agency, most economy had certain raise. In industrialized economy, europe country went up most severely, in UK, rate increased from 5.3% in 2007 to 7.6% in 2009, Russia (5.9% in 2007, 8.4% in 2009), the EU average unemployment rate raise from 7.1% in 2007 to 9.7% in 2009, and Spain was conflicted hardest, reached 18.7% (37% for youths) in May 2009 — the highest in the eurozone.26 27 In December 2007, the U.S. unemployment rate was 4.9%.28 By October 2009, the unemployment rate had risen to 10.1%.29 A broader measure of unemployment which account marginally attached workers, part job and discouraged workers was 16.3%.30 In July 2009, fewer jobs were lost than expected, dipping the unemployment rate from 9.5% to 9.4%.
nt situation. In US, mostly in "construction, real estate, financial services, and the auto sector, in China, unemployment group is mainly in the manufactory industry and low added value sectors, and most factories located in the south of China.The number of unemployed people worldwide could consecutive increase by more than 50 million in 2010 as the global recession intensifies, the ILO has forecasted.
Financial market
As the one of victim in the recession, the global financial market shrinked over trillions dollars in the past three years. According to the announcement, International Monetary Fund estiamted that US and European banks lost more than $1 trillion on toxic assets and from bad loans from January 2007 to September 2009. These losses are expected to top $2.8 trillion from 2007-10. U.S. banks losses were forecast to hit $1 trillion and European bank losses will reach $1.6 trillion.32 Meanwhile, the major equity markets in the world were declined in certain degree. The average Don Jones industrial index decreased from peak(close to 14000 in October 2007) to the bottom(nearly 6600 in March 2009), impaired over halves than before. FTSE 100 index declined from 6730 in Oct 2007 to 3530.7 in 2st March 2009. NIKKEI 225 index fell almost 60% from July 2007(18200) to April 2009(7173). Obviously, this is a contagion in the worldwide, and most of stock market devalued exceeding 50%, compared the period before recession.
Summary
This chapter contains the overview of UK and global market in the 2009, first introduce the UK economy which decreased 10.5% in GDP from 2007 to 2009, and unemployment number increased 2.3% from 2007 to 2009, UK fell into the economic quagmire. In the same time, Global economy suffered the dilemma as well. In the next chapter, we will realize the performance of worldwide property industry and UK’s in the recession period
二零一零年五月六日,在此背景下,2010年的英国大选有结果,保守党成为第一个党在议会中,他们做了一个由尼克·克莱格领导的自由民主党联盟。保守党领袖戴维·卡梅伦担任英国首相。 2010年6月22日,财政大臣乔治·奥斯本宣布的首份财政预算案,政府的价值观基础上的责任,自由和fairness20。在这个计划中,迫切目标是解决不平衡英国经济,但最值得商榷的规定,增值税税率将从17.5%提高到20%,从2011年1月4日,虽然保守的意图是增加revenue20。相反,它代表英国人民需要交更多的税,比以前,英国的商品也将失去竞争力,因为较高的价格。在其他部分,如市政税和资本收益税都有不同幅度的增长,但是,如儿童福利和房屋福利的政府支出将在未来5 years21减少。正如上面所提到的,新的专职政府急于拔出英国脆弱的经济,严重的财政赤字泥。我不能想不是说谁从这个预算中获取利益,但有一件事我可以定义英国人会度过一个艰巨的5年。正如威廉姆斯男爵夫人说:我们是在一个地狱一个烂摊子'。
预算决策摘要
财政预算决策的影响概要载于下表
当前全球经济形势
全球经济正在遭受经济衰退的考验,200724在12月,在美国开始。由于当前世界经济体系,经济衰退蔓延到许多工业化国家,已经造成了经济活动减速宣布。这一全球性的经济衰退已经采取确定各种失衡的经济环境中,并引发了2007-2010年金融危机的爆发。
比较最后在20世纪30年代的全球经济衰退,如今,每个国家或经济联盟之间的联系越来越紧,相互合作越来越频繁。所以,当美国发生次贷危机,导致全球经济恐慌。某些国家,大大影响了比别人多。通过测量安全市场的下跌,货币贬值,主权债券利差上升,卡内基国际和平基金会国际经济简讯,乌克兰,以及阿根廷和牙买加,是受危机影响的国家最深刻的报告。
GDP比较
一般来说,国内生产总值被广泛用来衡量经济发展。在2007年和2009年的增长率比较,所有重要的经济体工会在一定程度上滑落下来。其中,严重影响的国家是俄罗斯,美国和英国。在俄罗斯的国内生产总值增长率从2007年的5.18%下降到2009年的-7.9%,美国(2007年为4.17%,2009年为-2.4%),英国(2007年为5.82%,2009年为-4.8%),日本(2.0%在2007年,2009年为-5.3%),德国(2007年为3.72%,-5%,2009年)。相比之下,中国(2007年为12.37%,2009年为8.7%),印度(2007年的5.71%,2009年为6.5%)和巴西(2007年的4.58%,2009年为-0.2%),“影响最小。 “
失业率
国际劳工组织(ILO)预测,随着经济衰退,有超过200万的失业在全球受金融危机影响自己带。先进国家的失业率比发展中国家更为严重。据中央情报局,最经济有一定的提高。欧洲国家在工业化经济上升最严重的是,在英国,率从2007年的5.3%增加至7.6%,在2009年,俄罗斯(2007年为5.9%,2009年为8.4%),欧盟平均失业率从7.1%提高2007年至2009年的9.7%,西班牙是冲突最严重,达到了18.7%的青年(37%)于2009年5月 - 2007年12月的最高在eurozone.26 27,美国的失业率为4.9%0.28 2009年10月,失业率已上升至10.1%.29一个更广泛的程度轻微连接的工人,部分作业和气馁的工人失业,占16.3%.30在2009年7月,更少的就业机会比预期丢失,浸渍失业率从9.5%至9.4%。
NT情况。在美国,大多是在“建筑,房地产,金融服务,以及汽车行业,在中国,失业组主要集中在制造行业和低附加值行业,大多数工厂设在南部。极具失业人数全世界的人们可以连续增加超过50万,在2010年,随着全球经济衰退的加剧,国际劳工组织的预测。
金融市场
在经济衰退的受害者之一,在过去三年,超过万亿美元的全球金融市场的萎缩。根据公告,国际货币基金组织预测采购,美国和欧洲银行损失超过1万亿美元的有毒资产和不良贷款从2007年1月至2009年9。这些损失预计将突破2.8万亿美元2007-10。美国银行损失预计将高达1万亿美元,欧洲银行的损失将达1.6 trillion.32,与此同时,在世界主要股市的下跌在一定程度上。唐道琼斯工业平均指数下降峰值(接近14000于2007年10月)的底部(2009年3月近6600),比以前减值超过一半。 2ST 2009年3月,富时100指数从2007年10月的6730下降到3530.7。日经225指数下跌了近60%,从2007年7月(18200)于2009年4月(7173)。显然,这是一个在世界范围内的蔓延,大部分股市贬值超过50%,比经济衰退前的期间。
总结
本章包含在2009年的英国和全球的市场概述,首先介绍了英国经济在2007至2009年国内生产总值下降了10.5%,失业人数增加2.3%,二○○七年至2009年,英国陷入经济困局。与此同时,全球经济遭遇的困境。在下一章中,我们将实现全球房地产行业的表现,英国的经济衰退期