The UK economy faces different challenges over the next decade. The assignment requires you to identify the key risks in terms of the economic, financial, political and social risks. The project should be 1,500 words.
The report should start with an executive summary of no more than 300 words that identifies the key risks faced by investors in the country and must have a clear conclusion as to which country's sovereign bonds the group would invest in and why.
Students should analyse the country's growth potential in terms of the formula for GDP.
Y = C+I+G+(X-M)
Students should obtain historical data, where available, and make projections for each constituent. The focus should be on areas such as the ability to grow domestic consumption; attract domestic / foreign investment; government spending (on infrastructure, healthcare and education), and each country's ability to fund these activities through taxes.
The net trade balance
Students should obtain a 10 year history of the country's balance of trade and present it in a table or graph, with currency movements over the period. Identify the key exports and key imports of the country and discuss the outlook for these key industries. Explain any large swings (typical causes are currency movements and/or product prices) and the consequences of a persistent trade deficit or surplus.
Charts and tables should be used as often as possible for numerical data, with text supporting the data.