MBA United Kingdom British Economy

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The UK has one of the most open economies in the western world. Twenty years ago, foreign exchange controls were annuled and the financial markets have been gradually deregulated. Trade with other countries acquired a high and rising percentage of total national output. The United Kingdom possesses the fifth largest gross domestic product in the world in terms of market exchange rates and the sixth largest by purchasing power parity (PPP). It possesses the second largest economy in Europe (after Germany), as well as being a member of the European Union and the G8 and possessing a seat in the permanent security council of the UN. The capital is London and it is one of the two largest financial centres in the world, along with New York City. The British economy is often described as an 'Anglo-Saxon economy'. It is made up of (in order of how much they contribute), the economies of England, Scotland, Wales and Northern Ireland.

The UK economy is a favorite locus for overseas direct investment. Many factors explicate this trend, including improvements in the supply-side performance of the economy, a favorable tax system and a much improved record on industrial relations.

The UK economy has, in recent years, seen the longest period of maintained economic growth for more than 150 years, and it is one of the strongest European Union economies in terms of inflation, interest rates and unemployment, all of which remain relatively low. But, in common with the economies of other English-speaking countries, it has higher levels of income inequality and weaker social services and public service sectors compared to Europe's other large economies. The United Kingdom currently ranks 17th on the Human Development Index. British GDP grew by 2.7% in 2006. GDP growth is expected to remain steady in 2007 with a forecast growth figure of 2.9%.

Economy Statistics

These are some of the most important statistics of United Kingdom's economy :

Economy of the United Kingdom Currency 1 Pound Sterling (£) = 100 pence (p) Fiscal year April 1 – March 31 Trade organisations EU, BCN, WTO and OECD Economy Statistics GDP (PPP) 6th $1.926 trillion (2006) GDP (PPP) (2005) $1.903 trillion GDP growth rate (2006) 2.7% GDP per capita (2005) $31,400 GDP per square kilometre (2005) $7,659,836 GDP per barrel (2005) $3,393 GNH (2005) $36,117 GDP by sector (2006) agriculture (1%), industry (26.5%), services (72.6%) Inflation rate on CPI (2006) 2.3% (2006) Poverty rate (2002) 17% Labour force (2003) 29.6m Labour force by occupation (2002) services (74%), industry (25%), agriculture (1%) Unemployment rate (2006) 5.4% Main Industries Machine tools, industrial equipment, scientific equipment, shipbuilding, aircrafts, motor vehicles and parts, electronic machinery, computers, processed metals, chemical products, coal mining, oil production, paper, food processing, textiles, clothing, and other consumer goods. Trading Partners Exports (2006) $468.8 billion Main Partners (2004) USA 15%, Germany 11.4%, France 9.7%, Ireland 7.4%,Netherlands 6.3%, Belgium 5.5%, Spain 4.8%, Italy 4.4% Imports (2006) $603 billion Main Partners (2004) Germany 14.1%, USA 8.7%, France 8%, Netherlands 7.2%, Belgium 5.5%, Italy 4.9%, China 4.1%, Ireland 4% Public finances Public Debt/Public Sector Net Cash Requirement (PSNCR)/ Public Sector Borrowing Requirement (PSBR) (2006) 39 Billion Public Debt (2006est) $1.06 trillion (55.7% of GDP) (2006) Revenues (2006) $973 billion Expenses (2006) $1.04 trillion Economic Aid Donor (2006) $8 billion

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