Market Overview

• The lightweight,
• Full-size, and
• Double strollers.

• Ipo Stroller,
• The MetroLite Stroller,
• The SnugRider Frame
• The LiteRider Stroller,
• Alano Stroller,
• Mosaic Stroller.

• Glider Stroller,
• Quattro Tour Sport, and
• Quattro Tour Stroller.

• Twin Ipo stroller,
• DuoGilder Stroller, and the
• Quattro Tour Duo Stroller.

Historic evidence shows that in past three decades there were three global recessions that affected different countries around the world and during these recessions the global per capita output growth rate was estimated to be zero or negative.

UK economy had been affected six times including the current recession. Further in the research paper we will discuss this ongoing UK recession in detail. ;(List of recessions in UK).

Effects of Recession on UK Economy

(UK recession deepens as manufacturing wilts, 2009)

; Effects on Labor Market ; on Unemployment Conditions

Signs of recession became evident in the second quarter of 2008 in UK when the claimant count (jobseekers allowance) increased to 3.6%, the vacancy levels declined by 5.6% and the redundancy levels increased by 14%. ;(The impact of the recession on the labour market , 2009).

The employment conditions are also expected to improve in the upcoming months of current year.; (UK Inflation Hedges Up and Unemployment Rate improves, 2010)

;(UK Economy will be hardest hit , 2009)

; In another article the author David Rosser states that UK’s flexible economy is working to help the unemployed people. Wales is the most affected area for unemployment in UK that carries half of the share out of the total unemployment; author also says that the unemployment level will continue to increase. (UK Recession Deepens as manufacuturing wilts, 2009)

; In another article the author says that according to the Scottish Government Economic Researchers data, in terms of unemployment women are most affected by this recession in Scotland where female employment rate declined by 1.9% as compared to the whole UK employment rate that was declined by just 0.8%. ;(Women Hardest hit as Recession closes in, 2009).

• Strong Infrastructure to support the slump situation.;

;

• Improper or Slow Government reforms to tackle the situation.
• Weak consumer spending may hurdle the prices to go up or inflation to increase.
• Slow and favorable trend of employment conditions may take the UK’s economy out of recession in Q4 of the current year.

• The weak situation of the global financial crises affecting the output and exports levels.
• Highest redundancy level among the developed countries.
• Declining trend of manufacturing and construction industries.

Economic Theories Linking with Recession

As well, the DP that has an integral connection with the recession phase of economy.

Phillips Curve Theory
Expectations- Augmented Phillips Curve Theory
Aggregate Demand and Aggregate Supply

Recession is that state of the economy when GDP declines continuously.

As we can see from the graphs presented (See Appendix 4, for graphs) shows that UK economy was facing deep recession and higher level of unemployment over the past two years. Consequently, till this phase of recession Phillips Curve Theory is applicable. However in deep recession, UK economy faced higher level of unemployment and UK government tried to lower the level of unemployment by increasing aggregate demand (AD) which increases national income in short run. Now, we can examine that in a situation where aggregate supply was low and aggregate demand (AD) was high, naturally it resulted in higher inflation level and unemployment level might remain the same. The increase in the aggregate demand was not in real terms, therefore the increase in the employment level disappeared unfortunately. Thus, UK continues to face higher inflation and probably the same or high unemployment level hence the present UK situation matches with the second phase theory of Expectations-Augmented Phillips Curve.

;
Gross Domestic Product (GDP)

GDP is the fundamental part of any economy’s financial records. ;(The impact of the recession on the labour market, 2009)

GDP, Unemployment and Recession

Continuously declining Gross Domestic Product (GDP) and rising unemployment demonstrates its clear links with recession. Our research and analysis shows that UK was enjoying a robust economic conditions and positive GDP level since past 16 years before experiencing the downward trend in GDP in 3rd and 4th quarter of 2008 that indicated first time the UK’s economic journey towards the recession phase. During 2008/2009, recession UK economy shrunk by 6 percent as it suffered six quarters of consecutive decline in GDP.

The continuous declined GDP has no doubt adversely affected the UK’s economy and left far reaching affects on unemployment level, inflation trends and on aggregate demand and supply conditions that will take unpredictable time to bring the economy back to the prerecession conditions.

All the given trends and graphs justifies the cuurent state of recession in the UK economy. Time series

Figure 1:; The net unsecured lending flows in during Jan 2007-Jan 2010

Figure 2:; The Credit card of UK customers during Jan 2007-Jan 2010

;
Regression

To investigate the amount of lending money to UK businesses, we studied the relationship between all SMEs and smaller SMEs. The given figures indicate the shrinking economy that eventually results in declined GDP that is an indication of Recession.

All SMEs = – 1.56 + 1.21 Smaller SMEs

Regression Analysis: All SMEs versus Smaller SMEs

All SMEs = – 1.56 + 1.21 Smaller SMEs

Smaller SMEs; 1.2075 0.2019 5.98; 0.000

Correlations: New lending, Net lending

Pearson correlation of New lending and Net lending = 0.890

Correlations: New lending, Repayments

Figure 3:; The Lending to small and medium-sized enterprises during Jan 2007-Jan 2010 with relation to the net lending and repayments.

The global recession of late 2000 has affected many countries around the globe and UK has the hardest hit among the developed countries for its labor market. The unemployment level increases to a drastic level and affected huge number of people in the country.

• ;Government can give subsidy to some selective organizations with higher costs to keep the people employed to reduce unemployment.

; In short, to conclude the global recession of late 2000s has affected many countries around the world. The most effected labor market and unemployment levels are the signs worrying the slow recovery of the GDP levels. Retrieved April 06, 2010, from recession/Britain39s-39lost-generation39-as-three.5842537.jp

The impact of the recession on the labour market .

UK Economy will be hardest hit . (2009, January 28). Retrieved April 04, 2010, from business/2009/jan/28/ilo-global-unemployment-to-soar

UK Inflation Hedges Up and Unemployment Rate improves. (2010, January 25). Retrieved April 06, 2010, from economy/2010: economy/2010/01/25/uk-inflation-hedges-up-and-unemployment-rate-improves/

UK recession deepens as manufacturing wilts.

UK Recession Deepens as manufacuturing wilts.

Women Hardest hit as Recession closes in. (2009, May 29).

Bank of England – Trends in Lending. (2010, April 07).

Unemployment rateEmployment rate falls to 72.2%

Annual inflation rates – 12 month percentage change

UK GDP since 1948

GDP changes over previous recessions. The economy , as the service sector recovered strength.

Chart 3.1 – Net unsecured lending flows

Part 2: Lending to UK businesses

Chart 1.1 – Lending to UK businesses by size

Smaller SMEs

Part 3: ;Lending to small and medium-sized enterprises

Net lending