Economic Impact of Foreign Students in UK

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Economic Impact of Foreign Students in UK

The UK is a country wich has a very strong education system. It leads to more and more foreign students come and study in here. Until 2013, there are 18% students international students in the UK, it is up to 425,265 students. The coming of this students created a lot of impacts for the UK’s economy. This essay will talking about the advantages and disadvantages of international students in the British economy.

The benefits of international students in British economy:

It is clear that the foreign students come with a lot of benefits. The direct benefits are showed in term of fee income, subsistence expenditure and spending with friends and relatives.

As a report shows that student spending supported over £80bn of UK economic output, which is roughly one third of the total contribution of the aviation sector to UK GDP1,and generated over £25bn of Gross Value Added ( GVA ). ( nef consulting 2013 ). The number of this report can show that spending on transportation wich is by international students is a large part, the UK can get a lot of profits from international students. International students daily life in the UK, they must spending on the necessities of life such as food, closes etc. It also can give profits to the local business such as restaurants supermarket and cloth shops etc. It is a good thing for the UK to get a economic growth. That is the direct income of it.

There is a table below which showed that the international students spending ( per person ) on public service in Sheffield

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As the table it can be seen that the public services spending by foreign students complete a sweep General public services ,Defence, Public order and safety, Economic affairs Environment protection , Housing and community amenities , Health, Recreation, culture and religion ,Education , Social protection. As it can be seen, except the part of spending on education, the social protection is the biggest part of it wich is £3,604 from 2010 to 2011, £3,551 from 2012 to 2013 ( inflated ). The spending in health also is the important part of the public service wich is £1,916 from 2010 to 2011, £1,888 from 2012 to 2013 ( inflated ) , £1,215 from 2012 to 2013 ( adjusted )

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Next, I wold like states that the indirect income of foreign students for the UK’s economy can be showed in terms of business services, logistics, wholesale, and Utilities. The total population is increased by international students come, the demand of sensitive goods will be increased and increase on these things will lead to business services, logistics, wholesale, and utilities also increase. Because the demand of goods has a increase by foreign people come in, the output of the UK also can be increased, wich means there are more people be needed to work in other words there are more jobs for unemployed people, it is a very good way for solve the can supports 833,803 jobs throughout the UK it is up to 2.8% of British employed population. There are some negative things of unemployment: for individual, unemployment will lead to loss of earnings, lower standard of living, loss of skills and depression.