United Kingdom Economy 2007

Economy - overview:
The UK, a leading trading power and financial center, is one of the quintet 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, then slowed to 1.7% in 2005 and 2.7% in 2006. 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 public opinion polls show a majority of Britons are 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 and a widening public deficit.

GDP (purchasing power parity):
$1.928 trillion (2006 est.)

GDP (official exchange rate):
$2.346 trillion (2006 est.)

GDP - real growth rate:
2.8% (2006 est.)

GDP - per capita (PPP):
$31,800 (2006 est.)

GDP - composition by sector:
agriculture: 0.9%
industry: 24.1%
services: 75% (2006 est.)

Labor force:
30.48 million (2006 est.)

Labor force - by occupation:
agriculture: 1.4%
industry: 18.2%
services: 80.4% (2006 est.)

Unemployment rate:
2.9% (2006 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 (1999)

Inflation rate (consumer prices):
2.3% (2006 est.)

Investment (gross fixed):
18.1% of GDP (2006 est.)

Budget:
revenues: $1.001 trillion
expenditures: $1.071 trillion (2006 est.)

Public debt:
42.7% of GDP (2006 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, other consumer goods

Industrial production growth rate:
0% (2006 est.)

Electricity - production:
372.6 billion kWh (2005)

Electricity - consumption:
348.7 billion kWh (2005)

Electricity - exports:
2.839 billion kWh (2005)

Electricity - imports:
11.16 billion kWh (2005)

Oil - production:
2.075 million bbl/day (2004 est.)

Oil - consumption:
1.827 million bbl/day (2004 est.)

Oil - exports:
1.956 million bbl/day (2004)

Oil - imports:
1.654 million bbl/day (2004)

Oil - proved reserves:
3.87 billion bbl (1 January 2006)

Natural gas - production:
84.16 billion cu m (2005 est.)

Natural gas - consumption:
91.16 billion cu m (2005 est.)

Natural gas - exports:
8.843 billion cu m (2005 est.)

Natural gas - imports:
15.84 billion cu m (2005)

Natural gas - proved reserves:
509.2 billion cu m (1 January 2006 est.)

Current account balance:
$-88.1 billion (2006 est.)

Exports:
$450.3 billion f.o.b. (2006 est.)

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

Exports - partners:
US 13.9%, Germany 10.9%, France 10.4%, Ireland 7.1%, Netherlands 6.3%, Belgium 5.2%, Spain 4.5% (2006)

Imports:
$604.2 billion f.o.b. (2006 est.)

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

Imports - partners:
Germany 12.8%, US 8.9%, France 6.9%, Netherlands 6.6%, China 5.3%, Norway 4.9%, Belgium 4.5% (2006)

Economic aid - donor:
ODA, $10.7 billion (2005)

Reserves of foreign exchange and gold:
$47.04 billion (2006 est.)

Debt - external:
$8.28 trillion (30 June 2006)

Stock of direct foreign investment - at home:
$1.135 trillion (2006 est.)

Stock of direct foreign investment - abroad:
$1.487 trillion (2006 est.)

Market value of publicly traded shares:
$3.058 trillion (2005)

Currency (code):
British pound (GBP)

Exchange rates:
British pounds per US dollar - 0.5418 (2006), 0.5493 (2005), 0.5462 (2004), 0.6125 (2003), 0.6672 (2002)