Global InformationEconomy of the United Kingdom information
 London is the heart of the United Kingdom's economy and the second-largest financial centre in the world
behind New York City. | |
| Currency | Pound sterling (GBP, £) |
|---|---|
Fiscal year | 1 April to 31 March[a] |
Trade organisations | WTO, G-20, G7 and OECD |
Country group |
|
| Statistics | |
| Population | 67,596,281 (2022)[3] |
| GDP |
|
| GDP rank |
|
GDP growth |
|
GDP per capita |
|
GDP per capita rank |
|
Inflation (CPI) |  3.2% (Mar 2024)[6] |
Base borrowing rate |  5.25% (Dec 2023)[7] |
Population below poverty line | 18.6% (2017 est.)[8] |
Gini coefficient | 35.4 medium (2021)[9] |
Human Development Index |
|
Labour force | 33,174,000 / 75.0% in employment (Oct–Dec 2023)[c][11] |
Labour force by occupation | List
|
| Unemployment | 1,320,000 / 3.8% (Oct–Dec 2023)[e][11] |
Average gross salary | £681.70 per week (2023)[f][11] |
Main industries | List
|
| External | |
| Exports |  £870.4 billion (12 months to Nov 2023)[g][12] (5th) |
Export goods | List
|
Main export partners | List
|
| Imports | £898.3 billion (12 months to Nov 2023)[g][12] (6th) |
Import goods | List
|
Main import partners | List
|
FDI stock |
|
Current account | £–78.3 billion (2022)[13] |
Gross external debt | £7.572 trillion (2023)[14] (2nd) |
Net international investment position | £–244.4 billion (2022)[13] |
| Public finances | |
Government debt | £2.540 trillion / 96% of GDP (2022/23)[15] |
Budget balance | £–131 billion / 5.1% of GDP (2022/23)[15] |
| Revenues | £1.027 trillion (2022/23)[15] |
| Expenses | £1.157 trillion (2022/23)[15] |
| Economic aid | $15.8 billion (2022)[i][16] |
Credit rating | List
|
Foreign reserves | List
|
The economy of the United Kingdom is a highly developed social market economy.[22][23][24] It is the sixth-largest national economy in the world measured by nominal gross domestic product (GDP), Tenth-largest by purchasing power parity (PPP), and twenty-first by nominal GDP per capita, constituting 3.1% of nominal world GDP.[25] The United Kingdom constitutes 2.3% of world GDP by purchasing power parity (PPP).[26][25]
The United Kingdom has one of the most globalised economies[27] and comprises England, Scotland, Wales and Northern Ireland.[28] In 2022, the United Kingdom was the fourth-largest exporter[29] in the world and the fourth-largest importer.[30] It also had the fourth-largest outward foreign direct investment,[31] and the thirteenth-largest inward foreign direct investment.[32] In 2022, the United Kingdom's trade with the European Union accounted for 42% of the country's exports and 48% of its imports.[33] Among OECD members, the United Kingdom has a highly efficient and strong social security system, which comprises roughly 24.5% of GDP.[34][35][36]
The service sector dominates, contributing 82% of GDP;[37] the financial services industry is particularly important, and London is the second-largest financial centre in the world.[38] Edinburgh was ranked 17th in the world, and 6th in Europe for its financial services industry in 2021.[39] The United Kingdom's technology sector is valued at US$1 trillion, third behind the United States and China.[40] The aerospace industry in the United Kingdom is the second-largest national aerospace industry.[41] Its pharmaceutical industry, the tenth-largest in the world,[42] plays an important role in the economy. Of the world's 500 largest companies, 18 are headquartered in the UK.[43] The economy is boosted by North Sea oil and gas production; its reserves were estimated at 2.5 billion barrels in 2021,[8] although it has been a net importer of oil since 2005.[44] There are significant regional variations in prosperity, with South East England and North East Scotland being the richest areas per capita. The size of London's economy makes it the wealthiest city by GDP per capita in Europe.[45]
In the 18th century, Britain was the first nation to industrialise.[46][47][48] During the 19th century, through its expansive colonial empire and technological superiority, Britain had a preeminent role in the global economy,[49] accounting for 9.1% of the world's GDP in 1870.[50] The Second Industrial Revolution was also taking place rapidly in the United States and the German Empire; this presented an increasing economic challenge for the UK, leading into the 20th century. The cost of fighting both the First and Second World Wars further weakened the UK's relative position. Despite a relative decline in its global dominance, in the 21st century the UK retains the ability to project significant power and influence around the world.[8][51][52][53]
Government involvement is primarily exercised by His Majesty's Treasury, headed by the Chancellor of the Exchequer, and the Department for Business and Trade. Since 1979, management of the economy has followed a broadly laissez-faire approach.[22][23][54][55][56][57] The Bank of England is the UK's central bank, and since 1997 its Monetary Policy Committee has been responsible for setting interest rates, quantitative easing, and forward guidance.
Cite error: There are <ref group=lower-alpha> tags or {{efn}} templates on this page, but the references will not show without a {{reflist|group=lower-alpha}} template or {{notelist}} template (see the help page).
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- ^ a b c d "Labour Market Profile". Nomis. Office for National Statistics. Retrieved 13 February 2024.
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- ^ a b McCrae, Richard (31 October 2023). "UK Balance of Payments, The Pink Book: 2023". Office for National Statistics. Retrieved 13 February 2024.
- ^ "IMF BoP IIP UK gross external debt NSA £m". Office for National Statistics. 28 March 2024. Retrieved 12 April 2024.
- ^ a b c d Keep, Matthew (15 January 2024). "The budget deficit: a short guide". House of Commons Library. Retrieved 13 February 2024.
- ^ "Official development assistance (ODA)". OECD. Retrieved 13 February 2024.
- ^ "United Kingdom 'AA/A-1+' Ratings Affirmed; Outlook Stable". S&P Global Ratings. 20 October 2023. Retrieved 13 February 2024.
- ^ "Moody's boosts view of UK after mini-Budget chaos". BBC News. 20 October 2023. Retrieved 13 February 2024.
- ^ "United Kingdom". Fitch Ratings. Retrieved 13 February 2024.
- ^ "Scope affirms United Kingdom's credit ratings at AA with a Stable Outlook". Scope Ratings. 3 November 2023. Retrieved 13 February 2024.
- ^ a b "HMT statistical release: UK official holdings of international reserves". gov.uk. 5 February 2024. Retrieved 13 February 2024.
- ^ a b Hawkins, Nigel (13 October 2010). "Privatization Revisited" (PDF). Retrieved 25 September 2014.
- ^ a b Griffiths, Alan; Wall, Stuart (16 July 2011). "Applied Economics" (PDF). Archived from the original (PDF) on 20 June 2013. Retrieved 25 September 2014.
- ^ Thane, Pat (2019). "The Origins of the British Welfare State". The Journal of Interdisciplinary History. 50 (3): 427–433. doi:10.1162/jinh_a_01448. S2CID 208223636.
- ^ a b "Global Economy Watch - Projections > Real GDP / Inflation > Share of 2016 world GDP". PWC. Retrieved 23 June 2017.
- ^ Thane, P. (1989). "The British Welfare State: Its Origins and Character". New Directions in Economic and Social History. pp. 143–154. doi:10.1007/978-1-349-20315-4_12. ISBN 978-0-333-49569-8.
- ^ "KOF Globalization Index". Globalization.kof.ethz.ch. Retrieved 5 September 2012.
- ^ "A Beginners Guide to UK Geography (2023)". Open Geography Portal. Office for National Statistics. 24 August 2023. Retrieved 9 December 2023.
- ^ "Exports of goods and services (BoP, current US$)". World Bank. Retrieved 14 February 2024.
- ^ "Imports of goods and services (BoP, current US$)". World Bank. Retrieved 14 February 2024.
- ^ "Foreign direct investment, net outflows (BoP, current US$)". World Bank. Retrieved 14 February 2024.
- ^ "Foreign direct investment, net inflows (BoP, current US$)". World Bank. Retrieved 14 February 2024.
- ^ Ward, Matthew (11 May 2023). "Statistics on UK-EU trade". House of Commons Library. Retrieved 13 February 2024.
- ^ Kenworthy, Lane (1999). "Do Social-Welfare Policies Reduce Poverty? A Cross-National Assessment" (PDF). Social Forces. 77 (3): 1119–1139. doi:10.2307/3005973. JSTOR 3005973. Archived (PDF) from the original on 10 August 2013.
- ^ Moller, Stephanie; Huber, Evelyne; Stephens, John D.; Bradley, David; Nielsen, François (2003). "Determinants of Relative Poverty in Advanced Capitalist Democracies". American Sociological Review. 68 (1): 22–51. doi:10.2307/3088901. JSTOR 3088901.
- ^ "Social Expenditure – Aggregated data".
- ^ Harari, Danie (13 April 2023). "A3: Components of GDP" (PDF). House of Commons Library. Retrieved 24 April 2023.
- ^ Reid, David (19 September 2019). "New York stretches lead over London as the world's top financial center, survey shows". CNBC.
- ^ "GFCI 27 Rank - Long Finance". www.longfinance.net. Retrieved 29 August 2020.
- ^ Johansson, Eric (29 March 2022). "'Brexit delayed UK tech scene's $1tn valuation,' industry leaders say". Verdict.
- ^ Wipfer, Laura (12 June 2017). "Facts and Figures 2017". ADS Group. Retrieved 25 June 2017.
- ^ Monaghan, Angela (22 April 2014). "Pharmaceutical industry drives British research and innovation". The Guardian. Retrieved 25 June 2017.
- ^ "Global 500". Fortune. Retrieved 28 August 2022.
- ^ "Crude oil and petroleum: production, imports and exports 1890 to 2015". Department for Business, Energy & Industrial Strategy. 25 August 2016. Retrieved 18 October 2016.
- ^ "London - Internal Market, Industry, Entrepreneurship and SMEs". European Commission. 23 July 2010.
- ^ Perry, Marvin; Jacob, Margaret C.; Chase, Myrna; Jacob, James R. (2009). Western Civilization: Ideas, Politics, and Society (9th ed.). Boston: Houghton Mifflin Harcourt. p. 503. ISBN 978-0-547-14701-7.
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