Page last updated on February 23,
Economy - overview:
The UK, a leading trading power and financial center, is the third largest economy in Europe after Germany and France. Over the past two decades, the government has greatly reduced public ownership and contained the growth of social welfare programs. 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 and the UK became a net importer of energy in 2005. Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. After emerging from recession in 1992, Britain's economy enjoyed the longest period of expansion on record during which time growth outpaced most of Western Europe. In 2008, however, the global financial crisis hit the economy particularly hard, due to the importance of its financial sector. Sharply declining home prices, high consumer debt, and the global economic slowdown compounded Britain's economic problems, pushing the economy into recession in the latter half of 2008 and prompting the then BROWN government to implement a number of measures to stimulate the economy and stabilize the financial markets; these include nationalizing parts of the banking system, cutting taxes, suspending public sector borrowing rules, and moving forward public spending on capital projects. Facing burgeoning public deficits and debt levels, the CAMERON government in 2010 initiated a five-year austerity program, which aims to lower London's budget deficit from over 10% of GDP in 2010 to nearly 1% by 2015. In November 2011, Chancellor of the Exchequer George OSBORNE announced additional austerity measures through 2017 because of slower-than-expected economic growth and the impact of the euro-zone debt crisis. The Bank of England periodically coordinates interest rate moves with the European Central Bank, but Britain remains outside the European Economic and Monetary Union (EMU).
GDP (purchasing power parity):
$2.25 trillion (2011 est.)
country comparison to the world: 9
$2.225 trillion (2010 est.)
$2.195 trillion (2009 est.)
note: data are in 2011 US dollars
[see also:
GDP country ranks ]
GDP (official exchange rate):
$2.481 trillion (2011 est.)
[see also: GDP (official exchange rate) country ranks ]
GDP - real growth rate:
1.1% (2011 est.)
country comparison to the world: 183
1.4% (2010 est.)
-4.4% (2009)
[see also:
GDP - real growth rate country ranks ]
GDP - per capita:
$35,900 (2011 est.)
country comparison to the world: 33
$35,800 (2010 est.)
$35,500 (2009 est.)
note: data are in 2011 US dollars
[see also:
GDP - per capita country ranks ]
GDP - composition by sector:
agriculture: 0.7%
[see also: GDP - composition by sector - agriculture country ranks ]
industry: 21.6%
[see also: GDP - composition by sector - industry country ranks ]
services: 77.7% (2011 est.)
[see also: GDP - composition by sector - services country ranks ]
Labor force:
31.76 million (2011 est.)
country comparison to the world: 20
[see also: Labor force country ranks ]
Labor force - by occupation:
agriculture: 1.4%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 18.2%
[see also: Labor force - by occupation - industry country ranks ]
services: 80.4% (2006 est.)
[see also: Labor force - by occupation - services country ranks ]
Unemployment rate:
7.9% (2011 est.)
country comparison to the world: 93
7.8% (2010 est.)
[see also:
Unemployment rate country ranks ]
Population below poverty line:
14% (2006 est.)
[see also: Population below poverty line country ranks ]
Household income or consumption by percentage share:
lowest 10%: 2.1%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 28.5% (1999)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]
Distribution of family income - Gini index:
34 (2005)
country comparison to the world: 94
36.8 (1999)
[see also:
Distribution of family income - Gini index country ranks ]
Investment (gross fixed):
14.4% of GDP (2011 est.)
country comparison to the world: 167
[see also: Investment (gross fixed) country ranks ]
Budget:
revenues: $1.015 trillion
[see also: Budget revenues country ranks ]
expenditures: $1.232 trillion (2011 est.)
[see also: Budget expenditures country ranks ]
Taxes and other revenues:
40.9% of GDP (2011 est.)
country comparison to the world: 38
[see also: Taxes and other revenues country ranks ]
Budget surplus (+) or deficit (-):
-8.8% of GDP (2011 est.)
country comparison to the world: 190
[see also: Budget surplus (+) or deficit (-) country ranks ]
Public debt:
79.5% of GDP (2011 est.)
country comparison to the world: 21
76.1% of GDP (2010 est.)
note: data cover general Government Debt, and includes 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 intra-governmental debt; intra-governmental 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.
[see also:
Public debt country ranks ]
Inflation rate (consumer prices):
4.5% (2011 est.)
country comparison to the world: 107
3.3% (2010 est.)
[see also:
Inflation rate (consumer prices) country ranks ]
Central bank discount rate:
7.75% (31 December 2010 est.)
country comparison to the world: 136
0.5% (31 December 2009 est.)
[see also:
Central bank discount rate country ranks ]
Commercial bank prime lending rate:
4% (31 December 2011 est.)
country comparison to the world: 174
3.962% (31 December 2010 est.)
[see also:
Commercial bank prime lending rate country ranks ]
Stock of narrow money:
$96.55 billion (31 December 2011 est.)
country comparison to the world: 34
$88.88 billion (31 December 2010 est.)
[see also:
Stock of narrow money country ranks ]
Stock of broad money:
$3.53 trillion (31 December 2011 est.)
country comparison to the world: 6
$3.362 trillion (31 December 2010 est.)
[see also:
Stock of broad money country ranks ]
Stock of domestic credit:
$5.151 trillion (31 December 2009)
country comparison to the world: 5
$4.436 trillion (31 December 2008)
[see also:
Stock of domestic credit country ranks ]
Market value of publicly traded shares:
$3.107 trillion (31 December 2010)
country comparison to the world: 5
$2.796 trillion (31 December 2009)
$1.852 trillion (31 December 2008)
[see also:
Market value of publicly traded shares country ranks ]
Agriculture - products:
cereals, oilseed, potatoes, vegetables; cattle, sheep, poultry; fish
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, other consumer goods
Industrial production growth rate:
0.2% (2011 est.)
country comparison to the world: 150
[see also: Industrial production growth rate country ranks ]
Electricity - production:
346 billion kWh (2009 est.)
country comparison to the world: 12
[see also: Electricity - production country ranks ]
Electricity - consumption:
344.7 billion kWh (2008 est.)
country comparison to the world: 12
[see also: Electricity - consumption country ranks ]
Electricity - exports:
3.748 billion kWh (2009 est.)
[see also: Electricity - exports country ranks ]
Electricity - imports:
2.861 billion kWh (2009 est.)
[see also: Electricity - imports country ranks ]
Oil - production:
1.393 million bbl/day (2010 est.)
country comparison to the world: 21
[see also: Oil - production country ranks ]
Oil - consumption:
1.622 million bbl/day (2010 est.)
country comparison to the world: 15
[see also: Oil - consumption country ranks ]
Oil - exports:
1.311 million bbl/day (2009 est.)
country comparison to the world: 20
[see also: Oil - exports country ranks ]
Oil - imports:
1.45 million bbl/day (2009 est.)
country comparison to the world: 13
[see also: Oil - imports country ranks ]
Natural gas - production:
56.3 billion cu m (2010 est.)
country comparison to the world: 17
[see also: Natural gas - production country ranks ]
Natural gas - consumption:
94.28 billion cu m (2010 est.)
country comparison to the world: 8
[see also: Natural gas - consumption country ranks ]
Natural gas - exports:
15.65 billion cu m (2010 est.)
country comparison to the world: 17
[see also: Natural gas - exports country ranks ]
Natural gas - imports:
53.63 billion cu m (2010 est.)
country comparison to the world: 6
[see also: Natural gas - imports country ranks ]
Natural gas - proved reserves:
256 billion cu m (1 January 2011 est.)
country comparison to the world: 41
[see also: Natural gas - proved reserves country ranks ]
Current account balance:
-$66.6 billion (2011 est.)
country comparison to the world: 194
