# How the UK is becoming a ‘third-world’ economy ![](https://i.ytimg.com/vi/OTWDzMjgsEY/maxresdefault.jpg) ## London's Economy - London's economy is worth approximately $652 billion, which would rank it as the 22nd largest economy globally if it were an independent nation. [(00:00:10)](https://www.youtube.com/watch?v=OTWDzMjgsEY&t=10s) ## The UK's Economic Challenges - The UK has the highest number of homeless individuals in the developed world. [(00:01:20)](https://www.youtube.com/watch?v=OTWDzMjgsEY&t=80s) - Following the 2008 financial crisis, the UK chose austerity measures over fiscal and social policy investments. [(00:04:24)](https://www.youtube.com/watch?v=OTWDzMjgsEY&t=264s) - [[Brexit]] caused a 25% reduction in direct foreign investment from 2016 to 2021. [(00:08:14)](https://www.youtube.com/watch?v=OTWDzMjgsEY&t=494s) - The UK government borrowed between £60 billion and £100 billion to provide financial support during the energy crisis caused by the [[Ukraine]] war. [(00:09:38)](https://www.youtube.com/watch?v=OTWDzMjgsEY&t=578s) - While the official unemployment rate in Britain is 4.4%, there are approximately 11 million people considered "economically inactive". [(00:12:25)](https://www.youtube.com/watch?v=OTWDzMjgsEY&t=745s)