The Economy of the United Kingdom

1. Pre-Reading Activities

Task I. Go through the following list of words that will help you to understand the contents of the text:

account for (v) – отвечать за

automotive (adj) – автомобильный

barley (n) – ячмень

beef (n) – говядина

beverage (n) – напиток

bulk (n) – основная масса, большая часть

clay (n) – глина

coal (n) – каменный уголь

commodity (n) – предмет потребления, (pl) товар

competition (n) – соревнование, конкуренция

coniferous (adj) – хвойный

contribution (n) – содействие, вклад, сотрудничество

crop (n) – урожай

currency (n) – валюта

current account deficit – дефицит текущего баланса, пассивное сальдо текущих операций

decline (v) – уменьшаться, приходить в упадок, ухудшаться

demand (n) – спрос, потребность

dolomite (n) – доломит

earnings (n) – заработок, прибыль

economic outlooks – экономические перспективы

emerge (v) – возникать, появляться

exceed (v) – превышать, превосходить

fell (v) – рубить, валить

fertilizer (n) – удобрение

fiber optic – оптоволокно, волоконная оптика

finished goods – готовые изделия

foreign exchange earnings – доход от внешних валютных операций

fuel (n) – топливо, горючее

handle (v) – управлять, осуществлять контроль

income inequality – неравенство доходов

insurance (n) – страхование

interest rate – процентная ставка

item (n) – единица, изделие

join (v) – присоединить(-ся), объединиться, вступить в члены

limestone (v) – известняк

merchandise (n) – товары

motor vehicle – автотранспортное средство; автомобильная промышленность

niche producer – узкоспециализированный производитель

obtain (v) – получать

offshore (adj) – иностранный, осуществляемый в других странах, оффшорный

opinion poll – опрос общественного мнения

oppose (v) – сопротивляться, выступать против

output (n) – продукция, выпуск, выработка

per capita – на человека, на душу населения

prosperous (adj) – процветающий, успешный

purchasing power parity – паритет покупательной силы

rapeseed (n) – рапс

real property – недвижимость

recession (n) – спад, снижение

reduce (v) – понижать, уменьшать, сокращать

refer to (v) – обращаться, ссылаться

retail trade – розничная торговля

retain (v) – удерживать, сохранять

revenue (n) – доход, доходная статья, поступления

rubber (n) – резина

seed (n) – семя, зерно

severe (adj) – жесткий, суровый

shale (n) – глинистый сланец

significant (adj) – значительный, важный, существенный

slowdown (n) – снижение темпа работы, торможение, замедление

slump (n) – резкий спад; резкое падение цен, спроса; кризис

steadily (adv) – неизменно, неуклонно, постоянно

steam-power (n) – энергия пара

substantial (adj) – значительный, существенный

suspending – временное прекращение, приостановка

take hold – начать действовать, начать распространяться

tough (adj) – жесткий

turmoil (n) – суматоха, беспорядок

volume car – легковой автомобиль массового производства

wane (v) – идти на убыль, уменьшаться, ослабевать

wholesale trade – оптовая торговля

worsen (v) – ухудшаться

Task II. Mind the following proper nouns and abbreviations:

EMU (the European Economic and Monetary Union) – Европейский экономический и валютный союз (ЭВС)

G7 (the Group of 7: the UK, the USA, Germany, France, Italy, Canada, Japan) – страны “Большой семерки”

GVA (Gross Value Added) – валовая добавленная стоимость

IMF (the International Monetary Fund) – Международный валютный фонд

OECD (the Organisation for Economic Cooperation and Development) – Организация экономического сотрудничества и развития (ОЭСР)

B. Reading and Comprehension Activities

Task III. Read the text carefully and do the comprehension tasks that follow:

During the days of the British Empire the UK economy was the largest in the world and the first to industrialize. Although it has declined in significance since, the UK is still the eighth largest economy in the world by purchasing power parity (2008 est.).

The UK is a member of the G7 (now expanding to the G8 and G20), the European Union (although not the European Economic and Monetary Union – EMU) and the OECD (the Organisation for Economic Cooperation and Development). It is also the founding member of the Commonwealth, the association formed by former British Empire states.

The economy of the United Kingdom of Great Britain includes the economies of England, Scotland, Wales and Northern Ireland. The Isle of Man and the Channel Isles are part of the British Isles and have offshore banking status.

The British economy is one of the most globalized economies in the world, thanks in no small part to the City of London, considered to be the largest financial centre in the world.

In the 1980s, under the Government of Margaret Thatcher, most state-owned enterprises in the industrial and service sectors, which since the 1940s had been nationalized, were privatized. The British Government now owns very few industries or businesses – Royal Mail is one example. Following the end of World War II, despite a largely prosperous period in the 1950s and 1960s, the British economy recorded weaker growth than other European nations and by the 1970s was referred to as the ‘sick man of Europe’. However, the 1980s saw a new economic boom and in recent years Britain has seen the longest period of sustained economic growth for more than 150 years, having grown in every quarter since 1992. This ended in 2008 when the United Kingdom entered a recession brought about by the global financial crisis.

The British economy was one of the strongest EU economies in terms of inflation, interest rates and unemployment, all of which remained relatively low. The United Kingdom, according to the IMF, in 2007 had the ninth highest level of GDP per capita in the EU in terms of purchasing power parity, after Luxembourg, Ireland, the Netherlands, and other countries. However, in common with the economies of other English-speaking countries, it had higher levels of income inequality than many European countries. During August 2008 the IMF has warned that the UK economic outlooks have worsened due to a twin shock: financial turmoil as well as rising commodity prices. Both developments harm the UK more than most developed countries, as the UK obtains revenue from exporting financial services while recording deficits in finished goods and commodities, including food. The UK has the world’s third largest current account deficit, despite significant oil revenues. This is mainly the result of a large deficit in the trade in manufactured goods.

The global economic slowdown, tight credit, and falling home prices prompted the Government to implement a number of new measures to stimulate the economy and stabilize the financial markets; these include part-nationalizing of the banking system, cutting taxes, suspending public sector borrowing rules, and bringing forward public spendings on capital projects. The Bank of England periodically coordinates interest rate moves with the European Central Bank, but Britain remains outside the EMU, and opinion polls show the majority of British people oppose joining the euro.