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flag United Kingdom United Kingdom: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

The United Kingdom is the seventh global economy. However, since April 2008, the country has been going through a deep recession, deeply hit by the international financial crisis, due to the dominance of the third (financial) sector over its economy. After contracting by almost 5% in 2009, the GDP growth recovered slowly in 2010, rising to 1.7% according to estimates. Growth should remain slow in the coming years.

The crisis has damaged the country's public finances. Aid to the financial sector and fiscal stimulus measures have deepened the deficit and increased the burden of public debt, the latter reaching record levels of 10% and 70% of GDP respectively. The government's priority is therefore to improve the budgetary situation. Other reform measures have been announced, notably regarding the educational system, social security, pension system, financial regulation, taxation, etc.

The unemployment rate, before one of the lowest in Europe, has been rising sharply since the crisis and is estimated at around 8%.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 2,182.432,250.212,480.982,603.882,742.86
GDP (Constant Prices, Annual % Change) -4.91.4e1.1e1.62.4
GDP per Capita (USD) 35,315e36,16439,60441,28943,204
General Government Balance (in % of GDP) -8.5-8.0-6.3-4.7-2.9
General Government Gross Debt (in % of GDP) 68.375.5e80.884.885.9
Inflation Rate (%) 2.13.3e4.52.42.0
Unemployment Rate (% of the Labor Force) 7.57.97.87.87.8
Current Account (billions USD) -37.32e-71.53e-67.38e-59.84-46.17
Current Account (in % of GDP) -1.7e-3.2e-2.7-1.7-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

The Agricultural sector accounts for less than 1% of the GDP, but is very productive. Main crops are potatoes, beetroot, wheat and barley. Livestock farming (especially sheep and cattle) continues to be a major agricultural activity, despite the crises of "mad cow" and "foot and mouth" diseases. The fishing sector is also well developed but is currently suffering from the depletion of fish volumes in the traditional fishing areas.

The United Kingdom has considerable mineral resources. Once the world's 10th biggest oil producer with huge natural gas reserves, its production is dropping fast. Nevertheless, groups like BP and Shell continue to be amongst the global leaders in the petroleum industry.

The secondary sector is not very competitive. The main activities are tool machinery, transport material and chemical products. The sectors with a good potential are information and communication technologies, bio-technology, aviation industry, renewable energies and defense.

The services sector, which employs three quarters of the active population and contributes three quarters of the GDP, is the driving force behind the economy. London remains Europe's largest financial market place, on par with New York.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 1.1 19.5 78.6
Value Added (in % of GDP) 0.7 21.1 78.2
Value Added (Annual % Change) -5.0 -10.2 -3.0

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
British Pound (GBP) - Average Annual Exchange Rate For 1 USD 0.540.500.540.640.65

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about the United Kingdom on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
74.5/100
Position:
Mostly free
World Rank:
16/179
Regional Rank:
7/42

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

The United Kingdom is one of the biggest actors of international trade. Trade represents almost 60% of its GDP. It is the world's second biggest exporter and the third biggest importer of commercial services, and the tenth biggest exporter and sixth biggest importer of goods. The United Kingdom's main trade partners are the European Union, the United States and China. The United Kingdom shows a trade deficit: after an improvement during the global recession, following a global drop in trade, the deficit has again worsened and this trend should continue in the coming years.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 601,424622,897632,975482,852557,530
Exports of Goods (million USD) 448,653439,091459,666352,873404,700
Imports of Services (million USD) 170,273196,212194,715157,501156,387
Exports of Services (million USD) 232,289283,611282,237228,256227,201
Imports of Goods and Services (Annual % Change) 9.1-0.8-1.2-12.3-
Exports of Goods and Services (Annual % Change) 10.7-5.3---
Imports of Goods and Services (in % of GDP) 31.629.731.930.1-
Exports of Goods and Services (in % of GDP) 28.526.629.327.7-
Trade Balance (million USD) -140,658-179,740-173,457-128,558-152,928
Trade Balance (Including Service) (million USD) -79,690-94,209-89,309-54,920-83,317
Foreign Trade (in % of GDP) 60.056.361.157.7-

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
United States 14.4%
Germany 10.8%
Netherlands 7.8%
France 7.7%
Ireland 6.2%
See More Countries 53.1%
Main Suppliers
(% of Imports)
2010
Germany 12.5%
China 9.4%
United States 9.0%
Netherlands 7.2%
France 6.5%
See More Countries 55.5%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 6.6%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 6.5%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 6.1%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 5.0%
Turbo-jets, turbo-propellers and other gas...Turbo-jets, turbo-propellers and other gas turbines 3.9%
See More Products 71.9%
Main Imports
(% of Imports)
2010
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 5.5%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 5.4%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 3.3%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses "incl. those in the form of transdermal administration" or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 2.9%
Automatic data processing machines and units...Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s. 2.4%
See More Products 80.5%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
British Monarchy
Parliament
Prime Minister's Office
Ministry of Agriculture, Fisheries and Food (MAFF)
Department of Trade and Industry
Directorate of Standardization (Dstan)
Inland Revenue
Statistical Office
Office for National Statistics
Central Bank
http://www.bankofengland.co.uk/
Stock Exchange
FTSE The Index Company
London Stock Exchange
Search Engines
Yahoo! UK
250000
AltaVista.co.uk
Curry Guide
Excite.co.uk
GBP
Hotbot.uk
Lifestyle UK
Lycos.co.uk
Mirago
Mugomilk
Netscape.uk
Search.uk
Splut
UK Directory
UK Index
UK Plus
WhatsNew.com
Yell
Economic Portals
Economy Watch

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Political Outline

Executive Power
Queen is the chief of the state. Though her role is in reality largely ceremonial, the Queen does continue to exercise three essential rights: the right to be consulted, the right to advice and the right to warn. Following legislative elections of the lower house of the parliament, the leader of the majority party or the leader of the majority coalition is usually appointed as Prime minister by the Queen to serve a five-year term.

Prime Minister is the head of the government and enjoys all the executive powers that include implementation of the law in the country and running the day-to-day affairs. The Cabinet of Ministers is appointed by the Prime Minister.

Legislative Power
The legislature is bicameral in UK. The Parliament consists of: House of Lords (the upper house) having approximately 625 life peers, 92 hereditary peers and 26 clergy, and House of Commons (the lower house) having 646 seats with its members elected by popular vote to serve five-year terms. The government is directly answerable to and dependent on the Parliament.
Main Political Parties
Labour Party: traditionally left-wing, allied to trade unions.

Conservative Party: centre-right , believes in free-market economy.

Liberal Democrats: centrist, moderate pro-European, opposes the Iraq war and strong on civil rights.

Current Political Leaders
Queen: ELIZABETH II (since February 1952).
Prime Minister: David Cameron (since May 2010), Conservative Party.
Next Election Dates
House of Commons: June 2015
 

Indicator of Freedom of the Press

World Rank:
19/178
Evolution:
3 places up compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
1/7
Civil Liberties:
1/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012