United Kingdom Economy - 2005

Economy - overview:
The UK, a leading trading power and financial center, is one of the quartet of trillion dollar economies of Western Europe. 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 reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial nation. Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. GDP growth slipped in 2001-03 as the global downturn, the high value of the pound, and the bursting of the "new economy" bubble hurt manufacturing and exports. Output recovered in 2004, to 3.2% growth. The economy is one of the strongest in Europe; inflation, interest rates, and unemployment remain low. The relatively good economic performance has complicated the BLAIR government's efforts to make a case for Britain to join the European Economic and Monetary Union (EMU). Critics point out that the economy is doing well outside of EMU, and they cite public opinion polls that continue to show a majority of Britons opposed to the euro. Meantime, the government has been speeding up the improvement of education, transport, and health services, at a cost in higher taxes.

GDP:
purchasing power parity - $1.782 trillion (2004 est.)

GDP - real growth rate:
3.2% (2004 est.)

GDP - per capita:
purchasing power parity - $29,600 (2004 est.)

GDP - composition by sector:
agriculture: 1%
industry: 26.3%
services: 72.7% (2004 est.)

Labor force:
29.78 million (2004 est.)

Labor force - by occupation:
agriculture 1.5%, industry 19.1%, services 79.5% (2004)

Unemployment rate:
4.8% (2004 est.)

Population below poverty line:
17% (2002 est.)

Household income or consumption by percentage share:
lowest 10%: 2.1%
highest 10%: 28.5% (1999)

Distribution of family income - Gini index:
36.8 (1999)

Inflation rate (consumer prices):
1.4% (2004 est.)

Investment (gross fixed):
16.2% of GDP (2004 est.)

Budget:
revenues: $834.9 billion
expenditures: $896.7 billion, including capital expenditures of NA (2004 est.)

Public debt:
39.6% of GDP (2004 est.)

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, and other consumer goods

Industrial production growth rate:
0.9% (2004 est.)

Electricity - production:
395.9 billion kWh (2003)

Electricity - consumption:
337.4 billion kWh (2003)

Electricity - exports:
2.959 billion kWh (2003)

Electricity - imports:
5.119 billion kWh (2003)

Oil - production:
1.957 million bbl/day (2003 est.)

Oil - consumption:
1.692 million bbl/day (2003 est.)

Oil - exports:
1.498 million bbl/day (2001)

Oil - imports:
1.084 million bbl/day (2003)

Oil - proved reserves:
25.41 billion bbl (2003)

Natural gas - production:
105.9 billion cu m (2001 est.)

Natural gas - consumption:
92.85 billion cu m (2001 est.)

Natural gas - exports:
15.75 billion cu m (2001 est.)

Natural gas - imports:
2.7 billion cu m (2001 est.)

Natural gas - proved reserves:
714.9 billion cu m (2003)

Current account balance:
$-33.46 billion (2004 est.)

Exports:
$347.2 billion f.o.b. (2004 est.)

Exports - commodities:
manufactured goods, fuels, chemicals; food, beverages, tobacco

Exports - partners:
US 15%, Germany 10.7%, France 9.2%, Ireland 6.8%, Netherlands 6.1%, Belgium 5.2%, Spain 4.5%, Italy 4.2% (2004)

Imports:
$439.4 billion f.o.b. (2004 est.)

Imports - commodities:
manufactured goods, machinery, fuels; foodstuffs

Imports - partners:
Germany 13%, US 9.2%, France 7.5%, Netherlands 6.6%, Belgium 5%, Italy 4.3%, China 4.2% (2004)

Reserves of foreign exchange and gold:
$48.73 billion (2004)

Debt - external:
$4.71 trillion (2003)

Economic aid - donor:
ODA, $4.2 billion (2004)

Currency (code):
British pound (GBP)

Exchange rates:
British pounds per US dollar - 0.5462 (2004), 0.6125 (2003), 0.6672 (2002), 0.6947 (2001), 0.6609 (2000)