Monday, 9 February 2009

Examine the impact of the current weather on the British economy.

Current weather worsen the economical situation in the UK because during previous week about 20% of all workers didn't go to work because of the weather conditions and that had an estimated costs to the economy equal to 6 bln pounds.

"The economy gets put back by a day as people earn less and pay less tax. People make do with what they've got at home, they don't go out and buy a sandwich," said Stephen Alambritis, chief spokesman at the FSB


Trading volumes at the London Stock Exchange were more than 10pc down as market makers failed to get into work. LSE said it expected about 580,000 trades to have taken place on Monday, compared with the 650,000 that took place on an average trading day in December.

© Copyright of Telegraph Media Group Limited 2009

I also suppose that most of the households were not prepared for such storms and so they started to use more fuel and that lead to an increase in imported gas and other fuels. So that lead to slowdown of the AD(because of increased leakage)

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