UK industrial output growth at six-month high
United Kingdom has been once experienced economic downturn like some other countries. Fortunately United Kingdom 's industrial output grew faster from September 2014 to March 2015. It has been increase by 0.7% year on year basis. One dominant factor that make United Kingdom rise in production output is oil and gas.
As aforementioned, UK economy is currently recovered faster than the others due to its oil price that is sharply increasing. The global recession could effect many countries around the globe but it comes to the cycle when there is an upward trend.
Then, gas and oil are one of the most important raw material for production. Every industrial must these raw material for the machines. If the price of gas and oil are decline, it will reduce the cost of production. Thus, industrial output and economy will accelerate.
Finally, UK is one of the industrial economy. This is the most basis assumption of why this country can be recovered promptly. Its manufacturing is value added. Though UK is an open economy, there is no need to depend on the others that much. Thus, the only primary concerned is oil which is the major factor that cause economic fluctuation.
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Well, if the lower price of oil and gas made better economy in UK, it might affect other countries as well. In addition, I have heard that Thailand also had a budget surplus last year due to a declining price of oil and gas. By looking at the number, you may say that the economy is better comparing to the prior year, but in reality I think it is not.
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ReplyDeleteIt seems to me that all industries in Thailand that need oil in their production are quick to raise their product's price when oil price increases, but they are very slow to reduce the price when oil price decreases. I do understand that high profit is every organization's objective but isn't it morally wrong? It sounds unfair to me.
ReplyDeleteI am not sure that increasing economy in UK is just luck, because BP, which is one of largest oil and gas company in the world, could accurately forecast the trend of gas and oil. The end of last year, price of oil dropped because OPEC planned to increase production of oil and American decreased using it. From this oscillation, ant company could make profit if it was able to stock up.
ReplyDeleteUK is very lucky. I think the economic of oil and gas also affect the currency because two or three months ago, I found that 1 pound was equal to 47-48 baht; however, today I have just found that 1 pound is equal to 53 baht. It's quite different.
ReplyDeleteAlthough UK is a lucky country ,but Thailand isn't. Now,Thailand encounters serious economic problem. The price of everything are higher but don't have any government officer to take care of it. I'm very concern about many people that will get a trouble with it.
ReplyDeleteI am also interested in this news because I think UK can recover very fast and this might be major reason that make GBP rate increased. For me this is bad news since I have to study in UK and I have not paid my tuition fee yet. So, I just hope that GBP rate does not increase more than it is today.
ReplyDeleteNowadays, both gas and oil are the most important factors to propel the world economic. Some countries which have gas and petrol, they can completely control whole economic systems around the world. Well, I have no surprised why UK economic recovered so fast. Because of UK produces gas and oil. It seems like UAE, this country has produced gas and oil and their economic never ever failed down or facing an economic crisis at all.
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