Overview: The UK is one of the world's great trading powers and financial centers, and its economy ranks among the four largest in Europe. The economy is essentially capitalistic with a generous admixture of social welfare programs and government ownership. Over the last decade the Thatcher government has halted the expansion of welfare measures and has promoted extensive reprivatization of the government economic sector. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs with only 1% of the labor force. Industry is a mixture of public and private enterprises, employing about 24% of the work force and generating 22% of GDP. The UK is an energy-rich nation with large coal, natural gas, and oil reserves; primary energy production accounts for 12% of GDP, one of the highest shares of any industrial nation. Following the recession of 1979-81, the economy has enjoyed the longest period of continuous economic growth it has had during the last 30 years. During the period 1982-89 real GDP grew by about 25%, while the inflation rate of 14% was nearly halved. Between 1986 and 1989 unemployment fell from 11% to about 6%. As a major trading

nation, the UK will continue to be greatly affected by: world boom or recession; swings in the international oil market; productivity trends in domestic industry; and the terms on which the economic integration of Europe proceeds.

GDP: $818.0 billion, per capita $14,300; real growth rate 2.3% (1989 est.)

Inflation rate (consumer prices): 7.8% (1989)

Unemployment rate: 6.4% (1989)

Budget: revenues $348.7 billion; expenditures $327.8 billion, including capital expenditures of $42.0 billion (FY89)

Exports: $151.0 billion (f.o.b., 1989); commodities--manufactured goods, machinery, fuels, chemicals, semifinished goods, transport equipment; partners--EC 50.4% (FRG 11.7%, France 10.2%, Netherlands 6.8%), US 13.0%, Communist countries 2.3%

Imports: $189.2 billion (c.i.f., 1989); commodities--manufactured goods, machinery, semifinished goods, foodstuffs, consumer goods; partners--EC 52.5% (FRG 16.6%, France 8.8%, Netherlands 7.8%), US 10.2%, Communist countries 2.1%

External debt: $15.7 billion (1988)

Industrial production: growth rate 0.9% (1989)

Electricity: 98,000,000 kW capacity; 361,990 million kWh produced, 6,350 kWh per capita (1989)

Industries: machinery and transportation equipment, metals, food processing, paper and paper products, textiles, chemicals, clothing, other consumer goods, motor vehicles, aircraft, shipbuilding, petroleum, coal

Agriculture: accounts for only 1.5% of GNP and 1% of labor force; highly mechanized and efficient farms; wide variety of crops and livestock products produced; about 60% self-sufficient in food and feed needs; fish catch of 665,000 metric tons (1987)

Aid: donor--ODA and OOF commitments (1970-87), $18.9 billion

Currency: British pound or pound sterling (plural--pounds); 1 British pound (L) = 100 pence

Exchange rates: British pounds (L) per US$1--0.6055 (January 1990), 0.6099 (1989) 0.5614 (1988), 0.6102 (1987), 0.6817 (1986), 0.7714 (1985)

Fiscal year: 1 April-31 March

NOTE: The information regarding United Kingdom on this page is re-published from the 1990 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of United Kingdom Economy 1990 information contained here. All suggestions for corrections of any errors about United Kingdom Economy 1990 should be addressed to the CIA.