Why is economics growth between the UK and the Eurozone so similar?
Discuss events occurring around the world, relations between countries, or actions of any group or organisation with an international focus.
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The UK and Europe are very closely linked in their economies. As we are seeing at the minute every day on the news a change in the situation of ones economic outlook greatly effects the others outlook.(Original post by Super Mario 64)
They look almost identical. What are factors that are causing the correlation to be so strong?
All answers are appreciated!
This is primarily because much of the UKs trade is with the EU. So if the EU has an increase in general level of income the UKs exports are likely to rise and therefore both will see positive growth.
Another factor to consider is the fact that we too are a part of the EU. This means that we have the same protectionisms as they do. This means that we sell goods at similar prices and likewise buy them at similar prices.
As we are a part of the EU Britain's bond prices are often effected by confidence in the EU as we are often seen as one and the same by foreign investors.
These are all examples of why we are so tightly tied with Europe. I hope it helps
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