4.1 UK Growth Compared with Emerging Economies:

1. Economic Growth Measurement:

• Economic growth is quantified by the annual change in Gross Domestic Product (GDP).
• Emerging economies like India, China, and Brazil exhibit increasing growth rates with relatively lower per capita income.

2. Manufacturing Sector:

• A significant factor propelling the rapid growth of emerging economies compared to the UK is the expansion of the manufacturing sector.
• Over the years, the UK has seen a decline in its manufacturing sector as businesses opt for manufacturing in emerging economies due to lower labor costs and raw material accessibility.
• China has emerged as the world's largest manufacturing economy and goods exporter.

3. Growth Rate Comparison:

• From 2002 to 2021, China's growth rate peaked at around 14% while the UK's peaked at around 4%.

• The consistent higher growth rate in China as compared to the UK is evident from the historical data.

4. Factors Contributing to China's Manufacturing Growth:

• China's economic growth has been characterized by low-priced manufactured goods, which has, in turn, helped maintain low inflation in the UK as the prices of items like clothes and electronic goods have consistently fallen1.

Emerging Economic Power in the Developing World:

1. Globalisation:

• Economic integration through increased cross-border movement of people, goods/services, technology, and finance defines globalization.
• Rapid globalization in the past two decades has amplified the economic power of less economically developed countries.