| Economy of the United Kingdom
|
| Currency
| 1 Pound Sterling (£) = 100 pence (p)
|
| Fiscal year
| April 1 March 31
|
| Trade Organisations
| EU, WTO and OECD
|
| Statistics
|
| GDP Ranking (2003)
| 4th
|
| GDP (2003)
| $1,666bn
|
| GDP growth rate (2004)
| 3.0%
|
| GDP per Capita (2003)
| $28,237
|
| GDP by sector (2003)
| agriculture (0.9%), industry (26.5%), services (72.6%)
|
| Inflation rate (2003)
| 1.4%
|
| Pop below poverty line (2002)
| 17%
|
| Labour force (2003)
| 29.6m
|
| Labour force by occupation (2002)
| services (74%), industry (25%), agriculture (1%)
|
| Unemployment rate (2003)
| 5%
|
| Main Industries
| machine 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, and other consumer goods
|
| Trading Partners
|
| Imports (2003)
| $363.6bn
|
| Main Partners (2003)
| Germany 13.5%, USA 10.2%, France 8.1%, Netherlands 6.3%, Belgium 4.9%, Italy 4.7%
|
| Exports (2003)
| $304.5bn
|
| Main Partners (2003)
| USA 15.7%, Germany 10.5%, France 9.5%, Netherlands 6.9%, Ireland 6.5%, Belgium 5.6%, Spain 4.4%, Italy 4.4%
|
| Public Finances
|
| Public Debt
| $849bn (51% of GDP)
|
| External Debt (1998)
| N/A
|
| Revenues (2003)
| $688.9bn
|
| Expenses (2003)
| $746.1bn
|
| Economic Aid (2001)
| $4.5bn
|
The United Kingdom, a leading trading power and financial centre, has the fourth largest economy in the world, the second largest in Europe, and is a member of the European Union. Its capital, London, is the largest financial centre in the world.
Since the 1980s, and particularly under the Government of Margaret Thatcher, many state enterprises that were nationalised in the 1940s have been privatised.
GDP growth slipped in 2001–2002 as the global downturn, the high value of the Pound Sterling, and the bursting of the "new economy" bubble hurt manufacturing and exports. However the UK economy is one of the strongest in Europe; inflation, interest rates, and unemployment remain low. Growth is now at 3.0% per annum, which is higher than that of France, Germany and many other European countries.
Energy resources
The UK has large coal, natural gas, and oil reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial nation.
Due to North Sea oil, during the 1990s the UK became a net hydrocarbon exporter, and the second largest producer of oil in western Europe after Norway. In June 2004 hydrocarbon exports fell below imports for the first time, although they are not expected to do so permanently for some years.
Around about 80% of UK electricity is currently generated from fossil fuels, nuclear power and an increasing contribution from wind turbines make up the bulk of the remainder. The UK is the world's 8th greatest producer of carbon emissions, producing around 2.3% of the total generated from fossil fuels. The government is a signatory to the Kyoto Protocol and has launched a Climate Change Programme to reduce emissions significantly beyond the Kyoto commitments.
Due to the island location of the UK, the country has great potential for generating electricity from wave power and tidal power, although these have not yet been exploited on a commercial basis.
Industries
Service industries, particularly banking, insurance, and business services, account by far for the largest proportion of GDP and employ around 70% of the working population.
Manufacturing continues to decline in importance.
Tourism
Tourism is the 6th largest industry in the UK, contributing 76 billion pounds to the economy. It employs 1,800,000 full-time equivalent people — 6.1% of the working population (2002 figures) [1] (http://www.visitbritain.com/).
Agriculture
Agriculture is intensive, highly mechanised, and efficient by European standards, producing about 60% of food needs with only 1% of the labour force. It contributes around 2% of GDP. Around two thirds of production is devoted to livestock, one third to arable crops.
Taxation
The Labour government has increased funding of education, transport, and the National Health Service, at a cost in higher taxes. The government has been criticised by the Conservatives and Liberal Democrats for its stealth tax raises.
Currency
The relatively good economic performance has complicated the Blair government's efforts to make a case for Britain to leave the Pound Sterling and join the Euro. The British Prime Minister has pledged to hold a public referendum if membership meets Chancellor of the Exchequer Gordon Brown's "five economic tests". The tests are:
- Are business cycles and economic structures compatible with European interest rates on a permanent basis?
- If problems emerge, is there sufficient flexibility to deal with them?
- What impact would entry into the Euro have on the UK's financial services industry?
- Would joining the Euro create better conditions for firms making long-term decisions to invest in Britain?
- Would joining the Euro promote higher growth, stability and a lasting increase in jobs?
When assessing the tests, Gordon Brown concluded that while the decision was close, the United Kingdom should not yet join the Euro. In particular, he cited fluctuations in house prices as a barrier to immediate entry. The tests will be reassessed in the future. Public opinion polls show that a majority of Britons are currently opposed to the single currency.
Statistics
Income distribution
lowest 10%
highest 10% | (1986)
2.4%
24.7%
|
| Consumer prices inflation | RPI: 3% (2004), CPI: 1.6% (2004)
|
Labour force composition
services
government
manufacturing/construction
energy
agriculture
| (2004)
46%
28%
24%
1%
1%
|
| Industrial growth | -0.3% (1999)
|
| Electricity production | 343,099 GWh (1998)
|
Electricity production composition
fossil fuel
hydro
nuclear
other | (1998)
68.24%
1.49%
28.48%
1.79%
|
| Electricity consumption | 331,565 GWh (2003)
|
| Electricity exports | 200 GWh (1998)
|
| Electricity imports | 2,160 GWh (2003)
|
| Agriculture products | cereals, oilseed, potatoes, vegetables; cattle, sheep, poultry; fish
|
| Exported commodities | manufactured goods, fuels, chemicals; food, beverages, tobacco
|
| Imported commodities | manufactured goods, machinery, fuels; foodstuffs
|
| Exchange rates
|
£ per US$1
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995 | 0.5495 (August 2004)
0.5601
0.6208
0.6872
0.6699
0.6182
0.6087
0.6071
0.5841
0.6464
0.6396
|
£ per EU€1
2004
2003
2002
2001
2000
1999 | 0.6597 (August 2004)
0.7048
0.6523
0.6128
0.6311
0.6248
0.7038
|
See Also
External links
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