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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

The United Kingdom is the fifth global economy and the second in the EU. However, from April 2008, the country went into a deep recession. The Gross Domestic Product registered a sharp decline in 2009, mainly due to the international financial crisis that has affected the UK. In effect, the United Kingdom has a highly developed and diversified market economy, dominated by the tertiary sector. Company, banking and financial services, which were the first to be affected, are the country's primary activities.
The unemployment rate, one of the lowest in Europe, is rapidly increasing following the crisis. The British economy has to face important challenges: its recovery, the stabilization of its financial system, the modernization of public services (transport, education, public health, etc.) and the reform of its retirement system.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	2,435.70	2,803.40	2,674.09	2,007.05e	2,027.93e
GDP (constant prices, annual % change)	2.8	3.0	0.7	-4.1	-0.4
GDP per capita (USD)	40,202	46,041	43,785e	32,798e	32,746e
General government balance (in % of GDP)	-2.6	-2.6	-5.4e	-9.8e	-10.9
Inflation rate (%)	2.3	2.3	3.6e	1.5e	0.8
Unemployment rate (% of the labor force)	5.4	5.4	5.5	7.4	9.2
Current Account (billions USD)	-82.98	-80.72	-45.39e	-40.73	-30.46
Current Account (in % of GDP)	-3.4	-2.9	-1.7e	-2.0	-1.5e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

The Agricultural sector accounts for only 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 is the driving force behind the economy. London is 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)	1.4	22.0	76.3
Value added (in % of GDP)	0.9	23.1	76.0
Value added (annual % change)	1.1	0.9	3.6

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
British Pound (GBP) - Average annual exchange rate for 1 USD	0.55	0.55	0.54	0.50	0.54

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 79/100
Position:: mostly free
World Rank:: 10 out of 179
Regional Rank:: 4 out of 44

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

The United Kingdom is one of the most important performers in international trade. It is the world's second biggest exporter and the third biggest importer of commercial services, and the ninth biggest exporter and sixth biggest importer of goods. The United Kingdom's main trade partners are the European Union, the United States and China. In 2009, the United Kingdom showed a trade deficit, following a global drop in demand. This trend should continue in the coming years.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	387,254	461,140	509,044	588,251	620,705
Exports of goods (millions USD)	307,799	349,652	384,318	447,592	441,968
Imports of services (millions USD)	127,250	149,652	163,016	175,625	203,398
Exports of services (millions USD)	158,615	196,989	208,104	234,633	281,813
Imports of goods and services (annual % change)	2.0	6.6	7.1	9.8	-2.9
Exports of goods and services (annual % change)	1.7	4.9	8.2	10.7	-5.3
Imports of goods and services (in % of GDP)	28.2	28.2	30.1	32.0	29.5
Exports of goods and services (in % of GDP)	25.5	25.2	26.5	28.4	25.9
Trade Balance (millions USD)	-79,455	-111,488	-124,726	-140,658	-178,737
Trade Balance (including service) (millions USD)	-48,090	-64,151	-79,638	-81,650	-100,321
Foreign trade (in % of GDP)	53.7	53.4	56.5	60.4	55.4

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
United States	14.1%
Germany	11.5%
Netherlands	7.7%
France	7.5%
Ireland	7.5%
Belgium	5.1%
Spain	4.0%
Italy	3.7%
Sweden	2.0%
China	2.0%
Switzerland	1.9%
Russia	1.7%
India	1.7%
United Arab Emirates	1.5%
Japan	1.5%
Canada	1.5%
Hong Kong	1.4%
Australia	1.2%
Poland	1.2%
Norway	1.1%
See more countries	51.7%

Main suppliers (% of imports)	2008
Germany	13.0%
United States	8.7%
China	7.9%
Netherlands	7.3%
France	6.9%
Norway	5.9%
Belgium	4.6%
Italy	4.1%
Ireland	3.5%
Spain	3.0%
Japan	2.3%
Sweden	2.0%
Russia	1.9%
Canada	1.7%
South Africa	1.4%
Turkey	1.3%
Switzerland	1.3%
India	1.2%
Poland	1.2%
Denmark	1.1%
See more countries	56.1%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	15.1%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	13.2%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	9.5%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	7.7%
Pharmaceutical productsPharmaceutical products	6.7%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	4.5%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	3.6%
Organic chemicalsOrganic chemicals	3.3%
Iron and steelIron and steel	2.9%
Plastics and articles thereofPlastics and articles thereof	2.6%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.9%
Articles of iron or steelArticles of iron or steel	1.6%
Miscellaneous chemical productsMiscellaneous chemical products	1.6%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	1.2%
Works of art, collectors' pieces and antiquesWorks of art, collectors' pieces and antiques	1.1%
Aluminium and articles thereofAluminium and articles thereof	1.0%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.0%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	1.0%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.8%
Rubber and articles thereofRubber and articles thereof	0.7%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.7%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.7%
Copper and articles thereofCopper and articles thereof	0.6%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.5%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.5%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.5%
Ships, boats and floating structuresShips, boats and floating structures	0.5%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.5%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.4%
Meat and edible meat offalMeat and edible meat offal	0.4%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.4%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.3%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.3%
Nickel and articles thereofNickel and articles thereof	0.3%
Glass and glasswareGlass and glassware	0.3%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.3%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.2%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.2%
CerealsCereals	0.2%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.2%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.2%
Ceramic productsCeramic products	0.2%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.2%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.2%
Sugars and sugar confectionerySugars and sugar confectionery	0.2%
Live animalsLive animals	0.2%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.2%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.2%
Other base metals; cermets; articles thereofOther base metals; cermets; articles thereof	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.1%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.1%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.1%
Man-made filamentsMan-made filaments	0.1%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.1%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.1%
Man-made staple fibresMan-made staple fibres	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Wool, fine or coarse animal hair; horsehair yarn...Wool, fine or coarse animal hair; horsehair yarn and woven fabric	0.1%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.1%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.1%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.1%
See more products	47.8%

Main imports (% of imports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	12.9%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	12.8%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	10.2%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	9.3%
Pharmaceutical productsPharmaceutical products	3.1%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	2.9%
Plastics and articles thereofPlastics and articles thereof	2.8%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.6%
Organic chemicalsOrganic chemicals	2.5%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	1.9%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.8%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	1.7%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.6%
Articles of iron or steelArticles of iron or steel	1.5%
Iron and steelIron and steel	1.5%
Beverages, spirits and vinegarBeverages, spirits and vinegar	1.3%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	1.2%
Meat and edible meat offalMeat and edible meat offal	1.0%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.9%
Rubber and articles thereofRubber and articles thereof	0.9%
Miscellaneous chemical productsMiscellaneous chemical products	0.9%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.9%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.9%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.8%
Aluminium and articles thereofAluminium and articles thereof	0.8%
Ores, slag and ashOres, slag and ash	0.7%
Works of art, collectors' pieces and antiquesWorks of art, collectors' pieces and antiques	0.7%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.7%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.6%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.6%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.6%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.6%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.5%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.5%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.5%
Copper and articles thereofCopper and articles thereof	0.5%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.5%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.4%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.4%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.4%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.4%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.4%
Glass and glasswareGlass and glassware	0.4%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.3%
Nickel and articles thereofNickel and articles thereof	0.3%
Ceramic productsCeramic products	0.3%
Sugars and sugar confectionerySugars and sugar confectionery	0.3%
Live trees and other plants; bulbs, roots and the...Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage	0.3%
FertilizersFertilizers	0.3%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.3%
CerealsCereals	0.3%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.2%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Other base metals; cermets; articles thereofOther base metals; cermets; articles thereof	0.2%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.2%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.2%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.2%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.1%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Man-made filamentsMan-made filaments	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Man-made staple fibresMan-made staple fibres	0.1%
Live animalsLive animals	0.1%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.1%
Ships, boats and floating structuresShips, boats and floating structures	0.1%
See more products	51.6%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

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

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: Gordon Brown (since June 2007), Labour Party.
Next election dates: House of Commons: May 2010

Indicator of freedom of the press

World Rank:: 25/173
Evolution:: 1 place down compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 1/7

Map of freedom 2007
Source: Freedom House

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