A Social and Economic History of Britain: 1760–1950 (1950) online ==External links== Economy at the Office for National Statistics UK economy at a glance at the Financial Times UK profile at the CIA World Factbook UK profile at The World Bank United Kingdom United Kingdom United Kingdom
In Q4 2015, it exceeded 7%, a level not witnessed during peacetime since records began in 1772.
In 2015, employment was at its highest since records began, and GDP growth had become the fastest in the Group of Seven (G7) and Europe, but workforce productivity was the worst since the 1820s, with any growth attributed to a fall in working hours.
The UK's share of manufacturing output had risen from 9.5% in 1830 during the Industrial Revolution to 22.9% in the 1870s.
Real wage growth was the worst since the 1860s, and the Governor of the Bank of England described it as a lost decade.
The size of London's economy makes it the largest city by GDP per capita in Europe. In the 18th century Britain was the first nation to industrialise, and during the 19th century, through its expansive colonial empire and technological superiority, had a preeminent role in the global economy, accounting for 9.1% of the world's GDP in 1870.
The UK's share of manufacturing output had risen from 9.5% in 1830 during the Industrial Revolution to 22.9% in the 1870s.
It fell to 13.6% by 1913, 10.7% by 1938, and 4.9% by 1973.
However, it was recognised that government borrowing, which rose from 52% to 76% of GDP, had helped to avoid a 1930s-style depression.
It fell to 13.6% by 1913, 10.7% by 1938, and 4.9% by 1973.
Post-war, the United Kingdom enjoyed a long period without a major recession; there was a rapid growth in prosperity in the 1950s and 1960s, with unemployment staying low and not exceeding 3.5% until the early 1970s.
The self-sufficiency level was just under 50% in the 1950s, peaking at 80% in the 1980s, before declining to its present level at the turn of the 21st century.
Total employment in manufacturing fell from 7.1 million in 1979 to 4.5 million in 1992 and only 2.7 million in 2016, when it accounted for 10% of the economy. Manufacturing has increased in 36 of the last 50 years and was twice in 2007 what is in 1958, manufactures include Autodesk. In 2011 the UK manufacturing sector generated approximately £140,539 million in gross value added and employed around 2.6 million people.
Post-war, the United Kingdom enjoyed a long period without a major recession; there was a rapid growth in prosperity in the 1950s and 1960s, with unemployment staying low and not exceeding 3.5% until the early 1970s.
The annual rate of growth between 1960 and 1973 averaged 2.9%, although this figure was far behind other European countries such as France, West Germany and Italy. Deindustrialisation meant the closure of operations in mining, heavy industry, and manufacturing, resulting in the loss of highly paid working-class jobs.
Manufacturing in England and Wales declined from around 38% of jobs in 1961 to around 22% in 1981.
It reached crisis point in the 1970s against the backdrop of a worldwide energy crisis, high inflation, and a dramatic influx of low-cost manufactured goods from Asia. During the 1973 oil crisis, the 1973–74 stock market crash, and the secondary banking crisis of 1973–75, the British economy fell into the 1973–75 recession and the government of Edward Heath was ousted by the Labour Party under Harold Wilson, which had previously governed from 1964 to 1970.
Post-war, the United Kingdom enjoyed a long period without a major recession; there was a rapid growth in prosperity in the 1950s and 1960s, with unemployment staying low and not exceeding 3.5% until the early 1970s.
It reached crisis point in the 1970s against the backdrop of a worldwide energy crisis, high inflation, and a dramatic influx of low-cost manufactured goods from Asia. During the 1973 oil crisis, the 1973–74 stock market crash, and the secondary banking crisis of 1973–75, the British economy fell into the 1973–75 recession and the government of Edward Heath was ousted by the Labour Party under Harold Wilson, which had previously governed from 1964 to 1970.
Wilson secured a three-seat overall majority in a second election in October that year. The UK recorded weaker growth than many other European nations in the 1970s; even after the recession, the economy was blighted by rising unemployment and double-digit inflation, which exceeded 20% more than once and was rarely below 10% after 1973. In 1976, the UK was forced to apply for a loan of £2.3 billion from the International Monetary Fund.
GDP growth, which had briefly reached 4% per year in the early 1990s, gently declining thereafter, was relatively anaemic compared to prior decades, such as the 6.5% per year peak in the early 1970s, although growth was smoother and more consistent.
The United Kingdom is expected to launch the building of new nuclear reactors to replace existing generators and to boost the UK's energy reserves. ====Manufacturing==== In the 1970s, manufacturing accounted for 25 percent of the economy.
The annual rate of growth between 1960 and 1973 averaged 2.9%, although this figure was far behind other European countries such as France, West Germany and Italy. Deindustrialisation meant the closure of operations in mining, heavy industry, and manufacturing, resulting in the loss of highly paid working-class jobs.
It fell to 13.6% by 1913, 10.7% by 1938, and 4.9% by 1973.
It reached crisis point in the 1970s against the backdrop of a worldwide energy crisis, high inflation, and a dramatic influx of low-cost manufactured goods from Asia. During the 1973 oil crisis, the 1973–74 stock market crash, and the secondary banking crisis of 1973–75, the British economy fell into the 1973–75 recession and the government of Edward Heath was ousted by the Labour Party under Harold Wilson, which had previously governed from 1964 to 1970.
Wilson secured a three-seat overall majority in a second election in October that year. The UK recorded weaker growth than many other European nations in the 1970s; even after the recession, the economy was blighted by rising unemployment and double-digit inflation, which exceeded 20% more than once and was rarely below 10% after 1973. In 1976, the UK was forced to apply for a loan of £2.3 billion from the International Monetary Fund.
Wilson formed a minority government in March 1974 after the general election on 28 February ended in a [parliament].
Wilson secured a three-seat overall majority in a second election in October that year. The UK recorded weaker growth than many other European nations in the 1970s; even after the recession, the economy was blighted by rising unemployment and double-digit inflation, which exceeded 20% more than once and was rarely below 10% after 1973. In 1976, the UK was forced to apply for a loan of £2.3 billion from the International Monetary Fund.
Since 1979 management of the economy has followed a broadly laissez-faire approach.
Denis Healey, then Chancellor of the Exchequer, was required to implement public spending cuts and other economic reforms in order to secure the loan, and for a while the British economy improved, with growth of 4.3% in early 1979.
However, following the Winter of Discontent, when the UK was hit by numerous public sector strikes, the government of James Callaghan lost a vote of no confidence in March 1979.
This triggered the general election on 3 May 1979 which resulted in Margaret Thatcher's Conservative Party forming a new government. ===1979 to 1997=== A new period of neo-liberal economics began with this election.
GDP fell by 5.9% initially, but growth subsequently returned and rose to an annual rate of 5% at its peak in 1988, one of the highest rates of any country in Europe. Thatcher's modernisation of the economy was far from trouble-free; her battle with inflation, which in 1980 had risen to 21.9%, resulted in a substantial increase in unemployment from 5.3% in 1979 to over 10.4% by the start of 1982, peaking at nearly 11.9% in 1984 – a level not seen in Britain since the Great Depression.
Total employment in manufacturing fell from 7.1 million in 1979 to 4.5 million in 1992 and only 2.7 million in 2016, when it accounted for 10% of the economy. Manufacturing has increased in 36 of the last 50 years and was twice in 2007 what is in 1958, manufactures include Autodesk. In 2011 the UK manufacturing sector generated approximately £140,539 million in gross value added and employed around 2.6 million people.
During the 1980s, many state-owned industries and utilities were privatised, taxes cut, trade union reforms passed and markets deregulated.
GDP fell by 5.9% initially, but growth subsequently returned and rose to an annual rate of 5% at its peak in 1988, one of the highest rates of any country in Europe. Thatcher's modernisation of the economy was far from trouble-free; her battle with inflation, which in 1980 had risen to 21.9%, resulted in a substantial increase in unemployment from 5.3% in 1979 to over 10.4% by the start of 1982, peaking at nearly 11.9% in 1984 – a level not seen in Britain since the Great Depression.
The rise in unemployment coincided with the early 1980s global recession, after which UK GDP did not reach its pre-recession rate until 1983.
This trend continued for most of the 1980s, with newer industries and the service sector enjoying significant growth.
The subsequent economic recovery was extremely strong, and unlike after the early 1980s recession, the recovery saw a rapid and substantial fall in unemployment, which was down to 7.2% by 1997, although the popularity of the Conservative government had failed to improve with the economic upturn.
The self-sufficiency level was just under 50% in the 1950s, peaking at 80% in the 1980s, before declining to its present level at the turn of the 21st century.
Canary Wharf began development in the 1980s and is now home to major financial institutions such as Barclays Bank, Citigroup and HSBC, as well as the UK Financial Services Authority.
This is a decrease of 400,000 children since 1998–1999. == Data == This table shows the main economic indicators in 1980–2018.
Manufacturing in England and Wales declined from around 38% of jobs in 1961 to around 22% in 1981.
GDP fell by 5.9% initially, but growth subsequently returned and rose to an annual rate of 5% at its peak in 1988, one of the highest rates of any country in Europe. Thatcher's modernisation of the economy was far from trouble-free; her battle with inflation, which in 1980 had risen to 21.9%, resulted in a substantial increase in unemployment from 5.3% in 1979 to over 10.4% by the start of 1982, peaking at nearly 11.9% in 1984 – a level not seen in Britain since the Great Depression.
The rise in unemployment coincided with the early 1980s global recession, after which UK GDP did not reach its pre-recession rate until 1983.
In spite of this, Thatcher was re-elected in June 1983 with a landslide majority.
GDP fell by 5.9% initially, but growth subsequently returned and rose to an annual rate of 5% at its peak in 1988, one of the highest rates of any country in Europe. Thatcher's modernisation of the economy was far from trouble-free; her battle with inflation, which in 1980 had risen to 21.9%, resulted in a substantial increase in unemployment from 5.3% in 1979 to over 10.4% by the start of 1982, peaking at nearly 11.9% in 1984 – a level not seen in Britain since the Great Depression.
Rent has nearly doubled as a share of GDP since 1985, and is now larger than the manufacturing sector.
The UK had been relying on a surplus of inward investment to make up for its long-term current account deficit. == Mergers and acquisitions == Since 1985 103,430 deals with UK participation have been announced.
The Scottish Government, subject to the approval of the Scottish Parliament, has the power to vary the basic rate of income tax payable in Scotland by plus or minus 3 pence in the pound, though this power has not yet been exercised. In the 20-year period from 1986/87 to 2006/07 government spending in the UK averaged around 40% of GDP.
Unemployment had fallen below 3 million by the time of Thatcher's third successive election victory in June 1987; and by the end of 1989 it was down to 1.6 million. Britain's economy slid into another global recession in late 1990; it shrank by a total of 6% from peak to trough, and unemployment increased from around 6.9% in spring 1990 to nearly 10.7% by the end of 1993.
The international arm of Hilton Hotels, the world's fifth largest hotelier, used to be owned by Ladbrokes Plc, and was headquartered in Watford, Hertfordshire from 1987 to 2005.
GDP fell by 5.9% initially, but growth subsequently returned and rose to an annual rate of 5% at its peak in 1988, one of the highest rates of any country in Europe. Thatcher's modernisation of the economy was far from trouble-free; her battle with inflation, which in 1980 had risen to 21.9%, resulted in a substantial increase in unemployment from 5.3% in 1979 to over 10.4% by the start of 1982, peaking at nearly 11.9% in 1984 – a level not seen in Britain since the Great Depression.
Unemployment had fallen below 3 million by the time of Thatcher's third successive election victory in June 1987; and by the end of 1989 it was down to 1.6 million. Britain's economy slid into another global recession in late 1990; it shrank by a total of 6% from peak to trough, and unemployment increased from around 6.9% in spring 1990 to nearly 10.7% by the end of 1993.
Unemployment had fallen below 3 million by the time of Thatcher's third successive election victory in June 1987; and by the end of 1989 it was down to 1.6 million. Britain's economy slid into another global recession in late 1990; it shrank by a total of 6% from peak to trough, and unemployment increased from around 6.9% in spring 1990 to nearly 10.7% by the end of 1993.
However, inflation dropped from 10.9% in 1990 to 1.3% three years later.
GDP growth, which had briefly reached 4% per year in the early 1990s, gently declining thereafter, was relatively anaemic compared to prior decades, such as the 6.5% per year peak in the early 1970s, although growth was smoother and more consistent.
Annual growth rates averaged 2.68% between 1992 and 2007, with the finance sector accounting for a greater part than previously.
Total employment in manufacturing fell from 7.1 million in 1979 to 4.5 million in 1992 and only 2.7 million in 2016, when it accounted for 10% of the economy. Manufacturing has increased in 36 of the last 50 years and was twice in 2007 what is in 1958, manufactures include Autodesk. In 2011 the UK manufacturing sector generated approximately £140,539 million in gross value added and employed around 2.6 million people.
Unemployment had fallen below 3 million by the time of Thatcher's third successive election victory in June 1987; and by the end of 1989 it was down to 1.6 million. Britain's economy slid into another global recession in late 1990; it shrank by a total of 6% from peak to trough, and unemployment increased from around 6.9% in spring 1990 to nearly 10.7% by the end of 1993.
At the same time, [debt] rose from £420 billion in 1994 to £1 trillion in 2004 and £1.46 trillion in 2008 – more than the entire GDP of the UK. This extended period of growth ended in Q2 of 2008 when the United Kingdom entered a recession brought about by the global financial crisis.
This triggered the general election on 3 May 1979 which resulted in Margaret Thatcher's Conservative Party forming a new government. ===1979 to 1997=== A new period of neo-liberal economics began with this election.
The subsequent economic recovery was extremely strong, and unlike after the early 1980s recession, the recovery saw a rapid and substantial fall in unemployment, which was down to 7.2% by 1997, although the popularity of the Conservative government had failed to improve with the economic upturn.
Since 1997, the Bank of England's Monetary Policy Committee, headed by the Governor of the Bank of England, has been responsible for setting interest rates at the level necessary to achieve the overall inflation target for the economy that is set by the Chancellor each year.
====Creative industries==== The creative industries accounted for 7% of gross value added (GVA) in 2005 and grew at an average of 6% per annum between 1997 and 2005.
In England and Wales between 1997 and 2016, average house prices increased by 259%, while earnings increased by 68%.
An average home cost 3.6 times annual earnings in 1997 compared to 7.6 in 2016.
This is a decrease of 400,000 children since 1998–1999. == Data == This table shows the main economic indicators in 1980–2018.
(Synthetic Euro XEU before 1999).
The Finance industry and Energy & Power made up most of the value from 2000 until 2018 (both about 15%). Here is a list of the top 10 deals including UK companies.
At the same time, [debt] rose from £420 billion in 1994 to £1 trillion in 2004 and £1.46 trillion in 2008 – more than the entire GDP of the UK. This extended period of growth ended in Q2 of 2008 when the United Kingdom entered a recession brought about by the global financial crisis.
Production is now in decline and the UK has been a net importer of natural gas since 2004.
The economy is boosted by North Sea oil and gas production; its reserves were estimated at 2.8 billion barrels in 2016, although it has been a net importer of oil since 2005.
Production is now in decline and the UK has been a net importer of oil since 2005.
In 2005 it had proven recoverable coal reserves of 171 million tons.
====Creative industries==== The creative industries accounted for 7% of gross value added (GVA) in 2005 and grew at an average of 6% per annum between 1997 and 2005.
The international arm of Hilton Hotels, the world's fifth largest hotelier, used to be owned by Ladbrokes Plc, and was headquartered in Watford, Hertfordshire from 1987 to 2005.
In 2005, more than half (55%) of the UK were against adopting the currency, while 30% were in favour.
Eurostat figures show that the numbers of Britons at risk of poverty has fallen to 15.9% in 2014, down from 17.1% in 2010 and 19% in 2005 (after social transfers were taken into account). Poverty is countered in United Kingdom with the welfare state.
The Scottish Government, subject to the approval of the Scottish Parliament, has the power to vary the basic rate of income tax payable in Scotland by plus or minus 3 pence in the pound, though this power has not yet been exercised. In the 20-year period from 1986/87 to 2006/07 government spending in the UK averaged around 40% of GDP.
According to the government-sponsored Eddington report of 2006, congestion is in danger of harming the economy, unless tackled by road pricing and expansion of the transport network. In the year from February 2017 to January 2018, UK airports handled a total of 284.8 million passengers.
Annual growth rates averaged 2.68% between 1992 and 2007, with the finance sector accounting for a greater part than previously.
In 2007, the UK had the world's third largest current account deficit, due mainly to a large deficit in manufactured goods.
In July 2007, the UK had government debt at 35.5% of GDP.
As a result of the 2007–2010 financial crisis and the late-2000s global recession, government spending increased to a historically high level of 48% of GDP in 2009–10, partly as a result of the cost of a series of bank bailouts.
Total employment in manufacturing fell from 7.1 million in 1979 to 4.5 million in 1992 and only 2.7 million in 2016, when it accounted for 10% of the economy. Manufacturing has increased in 36 of the last 50 years and was twice in 2007 what is in 1958, manufactures include Autodesk. In 2011 the UK manufacturing sector generated approximately £140,539 million in gross value added and employed around 2.6 million people.
European aerospace companies active in the UK include Airbus, whose commercial aircraft, space, helicopter and defence divisions employ over 13,500 people across more than 25 UK sites. The pharmaceutical industry employs around 67,000 people in the UK and in 2007 contributed £8.4 billion to the UK's GDP and invested a total of £3.9 billion in research and development.
In 2007 exports of pharmaceutical products from the UK totalled £14.6 billion, creating a trade surplus in pharmaceutical products of £4.3 billion.
In 2007 the UK had a total energy output of 9.5 quadrillion Btus (10 exajoules), of which the composition was oil (38%), natural gas (36%), coal (13%), nuclear (11%) and other renewables (2%).
The NHS in England is by far the largest of the four parts and had a turnover of £92.5 billion in 2008. In 2007/08 higher education institutions in the UK had a total income of £23 billion and employed a total of 169,995 staff.
In 2007/08 there were 2,306,000 higher education students in the UK (1,922,180 in England, 210,180 in Scotland, 125,540 in Wales and 48,200 in Northern Ireland). ====Financial and business services==== The UK financial services industry added gross value of £116,363 million to the UK economy in 2011.
In 2007 the Prime Minister, Gordon Brown, pledged to hold a public referendum based on certain tests he set as Chancellor of the Exchequer.
There have been three major waves of increased M&A activity (2000, 2007 and 2017; see graph "M&A in the UK").
In 2007–2008, this was calculated to be £115 per week for single adults with no dependent children; £199 per week for couples with no dependent children; £195 per week for single adults with two dependent children under 14; and £279 per week for couples with two dependent children under 14.
In 2007–2008, 13.5 million people, or 22% of the population, lived below this line.
Four days after the election, Gordon Brown, the new Chancellor of the Exchequer, gave the Bank of England the freedom to control monetary policy, which until then had been directed by the government. During Blair's 10 years in office there were 40 successive quarters of economic growth, lasting until the second quarter of 2008.
At the same time, [debt] rose from £420 billion in 1994 to £1 trillion in 2004 and £1.46 trillion in 2008 – more than the entire GDP of the UK. This extended period of growth ended in Q2 of 2008 when the United Kingdom entered a recession brought about by the global financial crisis.
Beginning with the collapse of Northern Rock, which was taken into public ownership in February 2008, other banks had to be partly nationalised.
The Royal Bank of Scotland Group, at its peak the fifth-largest bank in the world by market capitalisation, was effectively nationalised in October 2008.
The Great Recession, as it came to be known, saw unemployment rise from just over 1.6 million in January 2008 to nearly 2.5 million by October 2009. In August 2008 the IMF warned that the country's outlook had worsened due to a twin shock: financial turmoil and rising commodity prices.
In May 2008, the IMF advised the UK government to broaden the scope of fiscal policy to promote external balance.
Of the approximately £16 billion invested in R&D by UK businesses in 2008, approximately £12 billion was by manufacturing businesses.
In 2008, the UK was the sixth-largest manufacturer in the world measured by value of output. In 2008 around 180,000 people in the UK were directly employed in the UK automotive manufacturing sector.
The UK is a major centre for engine manufacturing, and in 2008 around 3.16 million engines were produced in the country. The aerospace industry of the UK is the second- or third-largest aerospace industry in the world, depending upon the method of measurement.
The NHS in England is by far the largest of the four parts and had a turnover of £92.5 billion in 2008. In 2007/08 higher education institutions in the UK had a total income of £23 billion and employed a total of 169,995 staff.
The UK property market boomed for the seven years up to 2008, and in some areas property trebled in value over that period.
The Great Recession, as it came to be known, saw unemployment rise from just over 1.6 million in January 2008 to nearly 2.5 million by October 2009. In August 2008 the IMF warned that the country's outlook had worsened due to a twin shock: financial turmoil and rising commodity prices.
The UK's output per hour worked was on a par with the average for the "old" EU-15 countries. ===2009 to 2020=== In March 2009, the Bank of England (BoE) cut interest rates to a then-historic low of 0.5% and began quantitative easing (QE) to boost lending and shore up the economy.
The UK exited the Great Recession in Q4 of 2009 having experienced six consecutive quarters of negative growth, shrinking by 6.03% from peak to trough, making it the longest recession since records began and the deepest since World War II.
As a result of the 2007–2010 financial crisis and the late-2000s global recession, government spending increased to a historically high level of 48% of GDP in 2009–10, partly as a result of the cost of a series of bank bailouts.
In 2009, the UK produced 1.5 million barrels per day (bbl/d) of oil and consumed 1.7 million bbl/d.
As of 2010 the UK has around 3.1 billion barrels of proven crude oil reserves, the largest of any EU member state. In 2009 the UK was the 13th largest producer of natural gas in the world and the largest producer in the EU.
In 2009 the UK produced 19.7 million tons of coal and consumed 60.2 million tons.
According to the British Fashion Council, the fashion industry's contribution to the UK economy in 2014 is £26 billion, up from £21 billion in 2009.
Support for Labour slumped during the recession, and the general election of 2010 resulted in a coalition government being formed by the Conservatives and the Liberal Democrats. In 2011, household, financial, and business debts stood at 420% of GDP in the UK.
As of 2010 the UK has around 3.1 billion barrels of proven crude oil reserves, the largest of any EU member state. In 2009 the UK was the 13th largest producer of natural gas in the world and the largest producer in the EU.
However discount supermarkets such as ALDI have grown in popularity. London is a major retail centre and in 2010 had the highest non-food retail sales of any city in the world, with a total spend of around £64.2 billion.
Eurostat figures show that the numbers of Britons at risk of poverty has fallen to 15.9% in 2014, down from 17.1% in 2010 and 19% in 2005 (after social transfers were taken into account). Poverty is countered in United Kingdom with the welfare state.
Support for Labour slumped during the recession, and the general election of 2010 resulted in a coalition government being formed by the Conservatives and the Liberal Democrats. In 2011, household, financial, and business debts stood at 420% of GDP in the UK.
Total employment in manufacturing fell from 7.1 million in 1979 to 4.5 million in 1992 and only 2.7 million in 2016, when it accounted for 10% of the economy. Manufacturing has increased in 36 of the last 50 years and was twice in 2007 what is in 1958, manufactures include Autodesk. In 2011 the UK manufacturing sector generated approximately £140,539 million in gross value added and employed around 2.6 million people.
The UK is home to GlaxoSmithKline and AstraZeneca, respectively the world's third- and seventh-largest pharmaceutical companies. ====Mining, quarrying and hydrocarbons==== The Blue Book 2013 reports that this sector added gross value of £31,380 million to the UK economy in 2011.
In 2007/08 there were 2,306,000 higher education students in the UK (1,922,180 in England, 210,180 in Scotland, 125,540 in Wales and 48,200 in Northern Ireland). ====Financial and business services==== The UK financial services industry added gross value of £116,363 million to the UK economy in 2011.
According to a Deutsche Bank study published in March 2015, Britain was attracting circa one billion pounds of capital inflows a month not recorded by official statistics, up to 40 percent probably originating from Russia, which implies misreporting by financial institutions, sophisticated tax avoidance, and the UK's "safe-haven" reputation. ====Hotels and restaurants==== The Blue Book 2013 reports that this industry added gross value of £36,554 million to the UK economy in 2011.
Two days earlier, PM Boris Johnson had made it clear that "We don't want to see the virus being reimported into this country from abroad". ====Transport, storage and communication==== The transport and storage industry added a gross value of £59,179 million to the UK economy in 2011 and the telecommunication industry added a gross value of £25,098 million in the same year. The UK has a total road network of with of major roads, including of motorway.
The Blue Book 2013 reports that this sector added gross value of £151,785 million to the UK economy in 2011. As of 2016, high-street retail spending accounted for about 33% of consumer spending and 20% of GDP.
This was £13.0 billion higher than in the financial year of 2012–2013. Taxation in the United Kingdom may involve payments to at least two different levels of government: local government and central government (HM Revenue & Customs).
For the financial year of 2013–2014 public sector net borrowing was £93.7 billion.
The UK is home to GlaxoSmithKline and AstraZeneca, respectively the world's third- and seventh-largest pharmaceutical companies. ====Mining, quarrying and hydrocarbons==== The Blue Book 2013 reports that this sector added gross value of £31,380 million to the UK economy in 2011.
According to a Deutsche Bank study published in March 2015, Britain was attracting circa one billion pounds of capital inflows a month not recorded by official statistics, up to 40 percent probably originating from Russia, which implies misreporting by financial institutions, sophisticated tax avoidance, and the UK's "safe-haven" reputation. ====Hotels and restaurants==== The Blue Book 2013 reports that this industry added gross value of £36,554 million to the UK economy in 2011.
The Blue Book 2013 reports that this sector added gross value of £151,785 million to the UK economy in 2011. As of 2016, high-street retail spending accounted for about 33% of consumer spending and 20% of GDP.
In terms of net government debt as a percentage of GDP, at the end of June 2014 public sector net debt excluding financial sector interventions was £1304.6 billion, equivalent to 77.3% of GDP.
According to the British Fashion Council, the fashion industry's contribution to the UK economy in 2014 is £26 billion, up from £21 billion in 2009.
Eurostat figures show that the numbers of Britons at risk of poverty has fallen to 15.9% in 2014, down from 17.1% in 2010 and 19% in 2005 (after social transfers were taken into account). Poverty is countered in United Kingdom with the welfare state.
In 2015, employment was at its highest since records began, and GDP growth had become the fastest in the Group of Seven (G7) and Europe, but workforce productivity was the worst since the 1820s, with any growth attributed to a fall in working hours.
For 2015 as a whole, the current account deficit rose to a record high of 5.2% of GDP (£96.2bn), the highest in the developed world.
In Q4 2015, it exceeded 7%, a level not witnessed during peacetime since records began in 1772.
According to a Deutsche Bank study published in March 2015, Britain was attracting circa one billion pounds of capital inflows a month not recorded by official statistics, up to 40 percent probably originating from Russia, which implies misreporting by financial institutions, sophisticated tax avoidance, and the UK's "safe-haven" reputation. ====Hotels and restaurants==== The Blue Book 2013 reports that this industry added gross value of £36,554 million to the UK economy in 2011.
The economy is boosted by North Sea oil and gas production; its reserves were estimated at 2.8 billion barrels in 2016, although it has been a net importer of oil since 2005.
Wages fell by 10% in real terms in the eight years to 2016, whilst they grew across the OECD by an average of 6.7%.
Homes had become less affordable, a problem exacerbated by QE, which kept house prices 22% higher than they would otherwise have been after the crisis, according to the BoE's own analysis. A rise in unsecured household debt added to questions over the sustainability of the economic recovery in 2016.
Following the UK's 2016 decision to leave the European Union, the BoE cut interest rates to a new historic low of 0.25% for just over a year.
Total employment in manufacturing fell from 7.1 million in 1979 to 4.5 million in 1992 and only 2.7 million in 2016, when it accounted for 10% of the economy. Manufacturing has increased in 36 of the last 50 years and was twice in 2007 what is in 1958, manufactures include Autodesk. In 2011 the UK manufacturing sector generated approximately £140,539 million in gross value added and employed around 2.6 million people.
In England and Wales between 1997 and 2016, average house prices increased by 259%, while earnings increased by 68%.
An average home cost 3.6 times annual earnings in 1997 compared to 7.6 in 2016.
The Blue Book 2013 reports that this sector added gross value of £151,785 million to the UK economy in 2011. As of 2016, high-street retail spending accounted for about 33% of consumer spending and 20% of GDP.
The possibility of joining the euro has become a non-issue since the referendum decision to withdraw from the European Union in 2016 and subsequent withdrawal in 2020. ===Exchange rates=== Average for each year, in USD (US dollar) and EUR (euro) per GBP; and inversely: GBP per USD and EUR.
Inward investment also dropped, from a surplus of £120bn in the first half of 2016 to a deficit of £25bn in the same period of 2017.
The total value of exports however, has increased in the same period from £130 billion (€160 billion) to £240 billion (€275 billion). In June 2016 the UK voted to leave the EU in a national referendum on its membership of the EU.
According to the government-sponsored Eddington report of 2006, congestion is in danger of harming the economy, unless tackled by road pricing and expansion of the transport network. In the year from February 2017 to January 2018, UK airports handled a total of 284.8 million passengers.
London's six commercial airports form the world's largest city airport system measured by passenger traffic with 171 million passengers in 2017. ====Wholesale and retail trade==== This sector includes the motor trade, auto repairs, personal and household goods industries.
In contrast, the UK was second in Europe for outward FDI, with $42.59bn, giving a 17.24% share of the European market. In October 2017, the ONS revised the UK's balance of payments, changing the net international investment position from a surplus of £469bn to a deficit of £22bn.
Inward investment also dropped, from a surplus of £120bn in the first half of 2016 to a deficit of £25bn in the same period of 2017.
There have been three major waves of increased M&A activity (2000, 2007 and 2017; see graph "M&A in the UK").
bil GBP, which is about 50% more than the current peak of 2017).
By Q4 2018 net borrowing in the UK was the highest in the OECD at 5% of GDP.
Agriculture added gross value of £12.18 billion to the economy in 2018, and around 392,000 people were employed in agriculture, hunting, forestry and fishing.
Crossrail 2 is a proposed rail route in the South East of England. ===Production industries=== ====Electricity, gas and water==== This sector added gross value of £51.4 billion to the economy in 2018.
According to the government-sponsored Eddington report of 2006, congestion is in danger of harming the economy, unless tackled by road pricing and expansion of the transport network. In the year from February 2017 to January 2018, UK airports handled a total of 284.8 million passengers.
The Finance industry and Energy & Power made up most of the value from 2000 until 2018 (both about 15%). Here is a list of the top 10 deals including UK companies.
It is the fifth-largest national economy in the world measured by nominal gross domestic product (GDP), ninth-largest by purchasing power parity (PPP), and twenty first-largest by GDP per capita, constituting 3.3% of world GDP. The UK is one of the most globalised economies, and comprises England, Scotland, Wales and Northern Ireland. In 2019, the UK was the fifth-largest exporter in the world and the fifth-largest importer.
Economic growth had been weak before the crisis, with 0% growth in Q4 2019.
The agri-food sector as a whole (agriculture and food manufacturing, wholsale, catering, and retail) was worth £120 billion and accounts for 4 million jobs in the UK. ===Construction=== The construction industry of the United Kingdom employed around 2.3 million people and contributed gross value of £123.2 billion to the economy in 2019. One of the largest construction projects in the UK in recent years was Crossrail, costing an estimated £19 billion.
The January 2021 forecast for the year indicated an estimate that visits from other nations would be up "21% on 2020 but only 29% of the 2019 level".
As of January 2021, the forecast for the year suggested that spending would increase by 79% over the previous year and that "the value of spending will be back to 84% of 2019 levels" by the end of 2021. Some of the "COVID-19 restrictions" on domestic travel were to be loosened on 12 April 2021 and the UK planned to begin relaxing some restrictions on travel from other nations in mid May.
Crossrail, due to open in London during Autumn 2019, is Europe's largest infrastructure project with a £15 billion projected cost. Highways England is the government-owned company responsible for trunk roads and motorways in England apart from the privately owned and operated M6 Toll.
The UK-based Tesco is the fourth-largest retailer in Europe measured by turnover (after Swartz, Aldi, and Carrefour in 2019). ==Currency== London is the world capital for foreign exchange trading, with a global market share of 43.1% in 2019 of the daily $6.6 trillion global turnover.
After the activation of Article 50 of the Lisbon Treaty, the UK had been set to leave on Friday 29 March 2019.
However the leave date was extended to Friday 12 April 2019 and then extended again to Thursday 31 October 2019, and then extended again until Friday 31 January 2020 with the ability to exit earlier.
The future relationship between the UK and EU was under negotiation until the end of October 2019.
UK economic growth slowed during 2019, with uncertainty over Brexit and a world economic slowdown blamed. The UK left the EU in January 2020.
In 2020, the UK's trade with the 27 member states of the European Union accounted for 49% of the country's exports and 52% of its imports. The service sector dominates, contributing around 80% of GDP; the financial services industry is particularly important, and London is the second-largest financial centre in the world.
The UK's output per hour worked was on a par with the average for the "old" EU-15 countries. ===2009 to 2020=== In March 2009, the Bank of England (BoE) cut interest rates to a then-historic low of 0.5% and began quantitative easing (QE) to boost lending and shore up the economy.
Since the Great Recession, the country was no longer making a profit on its foreign investments. ===2020 to present=== In March 2020, in response to the coronavirus pandemic, a temporary ban was imposed on non-essential business and travel in the UK.
In the first half of 2020, GDP shrank by 22.6%, the deepest recession in UK history and worse than any other G7 or European country.
During 2020 the BoE purchased £450 billion of government bonds, taking the amount of quantitative easing since the start of the Great Recession to £895 billion.
Overall GDP shrank by 9.9% in 2020.
The January 2021 forecast for the year indicated an estimate that visits from other nations would be up "21% on 2020 but only 29% of the 2019 level".
Some increase was expected during 2021, slowly at first; the tourism authority concluded that the number of visits was not expected to come "even close to normal levels". The same VisitBritain report also discussed the effects of the pandemic on domestic travel within the UK in 2020, citing a significant reduction in spending, for an estimated decline of 62% over the previous year.
The possibility of joining the euro has become a non-issue since the referendum decision to withdraw from the European Union in 2016 and subsequent withdrawal in 2020. ===Exchange rates=== Average for each year, in USD (US dollar) and EUR (euro) per GBP; and inversely: GBP per USD and EUR.
However the leave date was extended to Friday 12 April 2019 and then extended again to Thursday 31 October 2019, and then extended again until Friday 31 January 2020 with the ability to exit earlier.
UK economic growth slowed during 2019, with uncertainty over Brexit and a world economic slowdown blamed. The UK left the EU in January 2020.
On 16 July 2020, the government of UK affirmed that businesses across the United Kingdom, after the transition period ends, will continue to enjoy internal trade and jobs would remain protected against uncertain environment .
See the government spending and economic management section for historical interest rates. ==See also== United Kingdom Internal Market Act 2020 United Kingdom Common Framework Policies Economy of England Economy of Scotland Economy of Wales Economy of Northern Ireland Irish Sea border ==Notes== ==References== ==Bibliography== ==Further reading== Gregg, Pauline.
Edinburgh is ranked 21st in the world, and 6th in Europe for its financial services industry in 2021.
Due to start opening by Christmas 2021, it will be a new railway line running east to west through London and into the surrounding area, with a branch to Heathrow Airport.
The January 2021 forecast for the year indicated an estimate that visits from other nations would be up "21% on 2020 but only 29% of the 2019 level".
Some increase was expected during 2021, slowly at first; the tourism authority concluded that the number of visits was not expected to come "even close to normal levels". The same VisitBritain report also discussed the effects of the pandemic on domestic travel within the UK in 2020, citing a significant reduction in spending, for an estimated decline of 62% over the previous year.
As of January 2021, the forecast for the year suggested that spending would increase by 79% over the previous year and that "the value of spending will be back to 84% of 2019 levels" by the end of 2021. Some of the "COVID-19 restrictions" on domestic travel were to be loosened on 12 April 2021 and the UK planned to begin relaxing some restrictions on travel from other nations in mid May.
The latter plan became less certain as of 8 April 2021 when sources in the European Union stated on that a "third wave of the pandemic [was sweeping] the continent"; the B117 variant was of particular concern.
From 1 January 2021, the powers which were previously exercised at an EU level in at least 70 policy areas were to directly transfer to the devolved administrations in Edinburgh, Cardiff and Belfast for the first time. ==Poverty== The United Kingdom is a developed country with social welfare infrastructure, thus discussions surrounding poverty tend to use a relatively high minimum income compared to developing countries.
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