Due to a stagnant "eurozone" economy between April and June, the United Kingdom is bracing itself for a period of economic decline, as well as contemplating the steps necessary for avoiding another lengthy recession. The slight decline of the reliable German economy, which has diminished by 0.2% in GDP growth this year, has signaled that harder times are most likely in the eurozone's future and have already affected the U.K.'s manufacturing industry and exports to mainland Europe. Five of the UK's top six major export partners reside within the eurozone (Germany, the Netherlands, France, Ireland, and Belgium), and this has prompted the nation's economists and political leaders to call for new economic policies to protect Great Britain's market interests.
Aside from the manufacturing industry, which slowed to 0.1% growth in August, the U.K.'s economy has been performing well throughout 2014. Contrasting with the stagnant eurozone, the U.K.'s GDP grew by 0.9% between April and June, which carried on the momentum of a 0.7% rise in the previous quarter. George Osborne, the current Chancellor of the Exchequer that is responsible for the U.K.'s financial and economic policies, claims that the continued growth stems from cutting business taxes to encourage investment, as well as keeping interest rates low at a record 0.5% to encourage spending in domestic markets.
In spite of these figures and forecast growth rates of 0.6% for the remainder of this year, British economists remain pessimistic due to the existing trade relationship with the eurozone. Chancellor Osborne claimed that low interest rates and reducing business taxes will not be enough to keep the U.K. out of the eurozone's economic woes. Osborne stated that the U.K. needs to expand its export horizons beyond the familiar markets of Western Europe in order to maintain its economic security. The U.K.'s other primary export partners include the United States, Australia, India, China, Japan, and the United Arab Emirates, among other Southeast Asian partners. Therefore, should the eurozone begin to show signs that another economic crisis looms in their future, global business trends should see an influx of British goods heading overseas to land in safer shores.