Monday, 16 February 2009

the impact of current weather on Britain's economy

Examine the impact of current weather on Britain's economy.
Weather is a very essential factor that easily influences the British econoomy because of the changeable weather and instability. Therefore,in British history,weather always plays an important role in economy.In all,the weather can affect the economy in four ways.
In the first place,the supply of agriculture will be influenced by weather which results in decreasing the scale of sales.Dating back to the 1850s,during this period 1850 to 1913,the climate change had a big effect on the output and productivity which leads to long swings og agriculture sector and pattern of economic growth.
Secondly,the bad weather will partly have an effect on company's normal operations,such as reducing the productivity-the CEBR suggested that a 20% reduction in productivity would cost £900m.And due to the recession,the impact by weather became much more bigger that almost no company is immune to the cuurent weather.For example, there was large snow storm weeks before that nearly led to a loss of £1.2bn just on Monday and Tuesday that said by the Federation of Small Businesses.It was calculatedmade based on the assumption that 20pc of the workforce or 6.4m people were off work on Monday because of the weather conditions.
What's more? The transport can be easliy affected by external condition like roads and air-planes.It was reported that the 10 centimetres (four inches) of snow which coated London, Europe's financial capital, Monday virtually shut down air, rail and road links, forcing thousands of workers to stay at home in the worst storms in 18 years. In addition,London business leaders also said the estimated cost to the British capital alone could be as much as 48 million pounds ($69 million) in lost productivity that all flights in and out of Heathrow, a major international hub, were cancelled.
At last but the least,as a country that famous for the tourism,if the weather gets worse,few people will travel to Britain which may be harmful to the economy.
However, some companies will actually benefit that "consumers spend more on heating and on warm clothes and any damage from the bad weather from accidents, or structural damage leads to increased spending on repairs," said McWilliams

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