The recovery of the economy is real. It is on the way up, with guarantee of security. The things have really brightened.
The recent shift from consumer spending to manufacturing has helped the economy a great deal. Manufacturing and growing exports have built a solid base for sustained growth. However the reforms are just the start. The work need to carry on for the growth to continue in the current form.
A few points of change has led to the current position of strength. They are:
- Shift from manufacturing to service and back – In post world war there was a paradigm shift towards service sector. The considerable shift towards services led to the instability. The crisis in 2008 got the economists thinking. Policies were made for growth of the manufacturing sector which has lent the robustness.
- Effect of other economies – As the economy of UK became more open, it was affected by economic changes all over the world. This was evident in the sub-prime crisis in US directly affecting economy of UK. Also the dependence on other economies made the situation worse. Keeping these things in perspective the economy was diversified and the results are promising.
- Growth of export sector – Even during the crisis the export sector kept up the growth. This sector exports services and goods. Exports helped the UK economy to bounce back to health.
- Focus on Saving – There was a serious shift in the way of spending. Five years of crisis led the public to focus on saving. This held the economy together and the savings are helping the economy in a big way.