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United Kingdom Economy 2018

SOURCE: 2018 CIA WORLD FACTBOOK AND OTHER SOURCES











United Kingdom Economy 2018
SOURCE: 2018 CIA WORLD FACTBOOK AND OTHER SOURCES


Page last updated on February 28, 2018

Economy - overview:
The UK, a leading trading power and financial center, is the third largest economy in Europe after Germany and France. 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 resources, but its oil and natural gas reserves are declining; the UK has been a net importer of energy since 2005. Services, particularly banking, insurance, and business services, are key drivers of British GDP growth. Manufacturing, meanwhile, has declined in importance but still accounts for about 10% of economic output.In 2008, the global financial crisis hit the economy particularly hard, due to the importance of its financial sector. Falling home prices, high consumer debt, and the global economic slowdown compounded the UK’s economic problems, pushing the economy into recession in the latter half of 2008 and prompting the then BROWN (Labour) government to implement a number of measures to stimulate the economy and stabilize the financial markets. Facing burgeoning public deficits and debt levels, in 2010 the then CAMERON-led coalition government (between Conservatives and Liberal Democrats) initiated an austerity program, which has continued under the Conservative government. However, the deficit still remains one of the highest in the G7, standing at 3.6% of GDP as of 2017, and the UK has pledged to lower its corporation tax from 20% to 17% by 2020. The UK had a debt burden of 90.4% GDP at the end of 2017.The UK’s economy has begun to slow since the referendum vote to leave the EU in June 2016. A sustained depreciation of the British pound has increased consumer and producer prices, weighing on consumer spending without spurring a meaningful increase in exports. The UK has an extensive trade relationship with other EU members through its single market membership and economic observers have warned the exit will jeopardize its position as the central location for European financial services. Prime Minister MAY is seeking a new “deep and special” trade relationship with the EU following the UK’s exit. However, economists doubt that the UK will be able to preserve the benefits of EU membership without the obligations.

GDP (purchasing power parity):
$2.88 trillion (2017 est.) $2.833 trillion (2016 est.) $2.783 trillion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 10

GDP (official exchange rate):
$2.565 trillion (2016 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
1.7% (2017 est.) 1.8% (2016 est.) 2.2% (2015 est.)
country comparison to the world: 169
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$43,600 (2017 est.) $43,200 (2016 est.) $42,700 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 40

Gross national saving:
13.4% of GDP (2017 est.) 12.6% of GDP (2016 est.) 13% of GDP (2015 est.)
country comparison to the world: 136
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 65.3%
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 19%
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 16.6%
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0.7%
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 30.1%
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -31.7% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 0.6%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 19%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 80.4% (2017 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

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:
0.7% (2017 est.)
country comparison to the world: 175
[see also: Industrial production growth rate country ranks ]

Labor force:
33.5 million (2017 est.)
country comparison to the world: 18
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 1.3%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 15.2%
[see also: Labor force - by occupation - industry country ranks ]
services: 83.5% (2014 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
4.4% (2017 est.) 4.9% (2016 est.)
country comparison to the world: 62
[see also: Unemployment rate country ranks ]

Population below poverty line:
15% (2013 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 1.7%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 31.1% (2012)

Distribution of family income - Gini index:
32.4 (2012) 33.4 (2010)
country comparison to the world: 111
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: $984.4 billion
[see also: Budget - revenues country ranks ]
expenditures: $1.076 trillion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
38.4% of GDP (2017 est.)
country comparison to the world: 43
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-3.6% of GDP (2017 est.)
country comparison to the world: 134
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
90.4% of GDP (2017 est.) 89.3% of GDP (2016 est.)
note: data cover general government debt, and include debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions
country comparison to the world: 26
[see also: Public debt country ranks ]

Fiscal year:
6 April - 5 April

Inflation rate (consumer prices):
2.6% (2017 est.) 0.7% (2016 est.)
country comparison to the world: 119
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
0.25% (31 December 2016) 0.5% (31 December 2015)
country comparison to the world: 138
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
4.3% (31 December 2017 est.) 4.44% (31 December 2016 est.)
country comparison to the world: 155
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$104.8 billion (31 December 2017 est.) $96.15 billion (31 December 2016 est.)
country comparison to the world: 39
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$3.066 trillion (31 December 2017 est.) $2.778 trillion (31 December 2016 est.)
country comparison to the world: 6
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$3.042 trillion (31 December 2017 est.) $2.785 trillion (31 December 2016 est.)
country comparison to the world: 9
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$3.019 trillion (31 December 2012 est.) $2.903 trillion (31 December 2011 est.) $3.107 trillion (31 December 2010 est.)
country comparison to the world: 6
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
-$91.42 billion (2017 est.) -$114.5 billion (2016 est.)
country comparison to the world: 200
[see also: Current account balance country ranks ]

Exports:
$436.5 billion (2017 est.) $407.3 billion (2016 est.)
country comparison to the world: 11
[see also: Exports country ranks ]

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

Exports - partners:
US 14.8%, Germany 10.7%, France 6.4%, Netherlands 6.2%, Ireland 5.6%, Switzerland 4.6%, China 4.4% (2016)

Imports:
$602.5 billion (2017 est.) $588.4 billion (2016 est.)
country comparison to the world: 6
[see also: Imports country ranks ]

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

Imports - partners:
Germany 13.6%, US 9.3%, China 9.2%, Netherlands 7.4%, France 5.2%, Belgium 4.9%, Switzerland 4.5% (2016)

Reserves of foreign exchange and gold:
$135 billion (31 December 2016 est.) $129.6 billion (31 December 2015 est.)
country comparison to the world: 19
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$8.126 trillion (31 March 2016 est.) $8.642 trillion (31 March 2015 est.)
country comparison to the world: 3
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$2.027 trillion (31 December 2017 est.) $1.858 trillion (31 December 2016 est.)
country comparison to the world: 4
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$1.634 trillion (31 December 2017 est.) $1.611 trillion (31 December 2016 est.)
country comparison to the world: 6
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
British pounds (GBP) per US dollar - 0.7836 (2017 est.) 0.738 (2016 est.) 0.738 (2015 est.) 0.607 (2014 est.) 0.6391 (2013 est.)


NOTE: 1) The information regarding United Kingdom on this page is re-published from the 2018 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of United Kingdom Economy 2018 information contained here. All suggestions for corrections of any errors about United Kingdom Economy 2018 should be addressed to the CIA.
2) The rank that you see is the CIA reported rank, which may habe the following issues:
  a) The assign increasing rank number, alphabetically for countries with the same value of the ranked item, whereas we assign them the same rank.
  b) The CIA sometimes assignes counterintuitive ranks. For example, it assigns unemployment rates in increasing order, whereas we rank them in decreasing order






This page was last modified 28-Feb-18
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