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United Kingdom Economy Profile

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Economy - overview

The UK, a leading trading power and financial center, is the third largest economy in Europe after Germany and France. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs with less than 2% of the labor force. The UK has large coal, natural gas, and oil resources, but its oil and natural gas reserves are declining; the UK has been a net importer of energy since 2005. Services, particularly banking, insurance, and business services, are key drivers of British GDP growth. Manufacturing, meanwhile, has declined in importance but still accounts for about 10% of economic output.

In 2008, the global financial crisis hit the economy particularly hard, due to the importance of its financial sector. Falling home prices, high consumer debt, and the global economic slowdown compounded the UK’s economic problems, pushing the economy into recession in the latter half of 2008 and prompting the then BROWN (Labour) government to implement a number of measures to stimulate the economy and stabilize the financial markets. Facing burgeoning public deficits and debt levels, in 2010 the then CAMERON-led coalition government (between Conservatives and Liberal Democrats) initiated an austerity program, which has continued under the Conservative government. However, the deficit still remains one of the highest in the G7, standing at 3.6% of GDP as of 2017, and the UK has pledged to lower its corporation tax from 20% to 17% by 2020. The UK had a debt burden of 90.4% GDP at the end of 2017.

The UK economy has begun to slow since the referendum vote to leave the EU in June 2016. A sustained depreciation of the British pound has increased consumer and producer prices, weighing on consumer spending without spurring a meaningful increase in exports. The UK has an extensive trade relationship with other EU members through its single market membership, and economic observers have warned the exit will jeopardize its position as the central location for European financial services. The UK is slated to leave the EU at the end of January 2020.

GDP (purchasing power parity)$3,118,396,000,000 (2019 est.)

$3,073,442,000,000 (2018 est.)

$3,032,781,000,000 (2017 est.)

note: data are in 2010 dollars
GDP (official exchange rate)$2,827,918,000,000 (2019 est.)
GDP - real growth rate1.26% (2019 est.)

1.25% (2018 est.)

1.74% (2017 est.)
GDP - per capita (PPP)$46,659 (2019 est.)

$46,245 (2018 est.)

$45,910 (2017 est.)

note: data are in 2010 dollars
Gross national saving13.3% of GDP (2019 est.)

13.4% of GDP (2018 est.)

13.9% of GDP (2017 est.)
GDP - composition, by end usehousehold consumption: 65.8% (2017 est.)

government consumption: 18.3% (2017 est.)

investment in fixed capital: 17.2% (2017 est.)

investment in inventories: 0.2% (2017 est.)

exports of goods and services: 30.2% (2017 est.)

imports of goods and services: -31.5% (2017 est.)
GDP - composition by sectoragriculture: 0.7% (2017 est.)

industry: 20.2% (2017 est.)

services: 79.2% (2017 est.)
Ease of Doing Business Index scoresOverall score: 83.5 (2020)

Starting a Business score: 94.6 (2020)

Trading score: 93.8 (2020)

Enforcement score: 68.7 (2020)
Population below poverty line18.6% (2017 est.)
Labor force35.412 million (2020 est.)
Labor force - by occupationagriculture: 1.3%

industry: 15.2%

services: 83.5% (2014 est.)
Unemployment rate3.17% (2019 est.)

2.51% (2018 est.)
Unemployment, youth ages 15-24total: 11.2%

male: 13%

female: 9.2% (2019 est.)
Household income or consumption by percentage sharelowest 10%: 1.7%

highest 10%: 31.1% (2012)
Distribution of family income - Gini index34.8 (2016 est.)

33.4 (2010)
Budgetrevenues: 1.028 trillion (2017 est.)

expenditures: 1.079 trillion (2017 est.)
Taxes and other revenues39.1% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-1.9% (of GDP) (2017 est.)
Public debt87.5% of GDP (2017 est.)

87.9% of GDP (2016 est.)

note: data cover general government debt and include debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intragovernmental debt; intragovernmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions
Inflation rate (consumer prices)1.7% (2019 est.)

2.4% (2018 est.)

2.6% (2017 est.)
Credit ratingsFitch rating: AA- (2020)

Moody's rating: Aaa (2020)

Standard & Poors rating: AA (2016)
Agriculture - productswheat, milk, barley, sugar beet, potatoes, rapeseed, poultry, oats, pork, beef
Industriesmachine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing, other consumer goods
Industrial production growth rate3.4% (2017 est.)
Current Account Balance-$121.921 billion (2019 est.)

-$104.927 billion (2018 est.)
Exports$901.882 billion (2019 est.)

$877.501 billion (2018 est.)

$851.693 billion (2017 est.)
Exports - commoditiescars, gas turbines, gold, crude petroleum, packaged medicines (2019)
Exports - partnersUnited States 15%, Germany 10%, China 7%, Netherlands 7%, France 7%, Ireland 6% (2019)
Imports$987.018 billion (2019 est.)

$955.655 billion (2018 est.)

$930.354 billion (2017 est.)
Imports - commoditiesgold, cars, crude petroleum, refined petroleum, broadcasting equipment (2019)
Imports - partnersGermany 13%, China 10%, United States 8%, Netherlands 7%, France 6%, Belgium 5% (2019)
Reserves of foreign exchange and gold$150.8 billion (31 December 2017 est.)

$129.6 billion (31 December 2015 est.)
Debt - external$8,721,590,000,000 (2019 est.)

$8,696,559,000,000 (2018 est.)
Exchange ratesBritish pounds (GBP) per US dollar -

0.7836 (2017 est.)

0.738 (2016 est.)

0.738 (2015 est.)

0.607 (2014 est.)

0.6391 (2013 est.)
Fiscal year6 April - 5 April

Source: CIA World Factbook
This page was last updated on September 18, 2021

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