United Kingdom Economy - 2022

GEOGRAPHICAL NAMES 

Economic 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 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. The UK is slated to leave the EU at the end of January 2020.

Real GDP (purchasing power parity)

$2,797,980,000,000 (2020 est.)

$3,101,640,000,000 (2019 est.)

$3,059,690,000,000 (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

1.26% (2019 est.)

1.25% (2018 est.)

1.74% (2017 est.)

Real GDP per capita

$41,600 (2020 est.)

$46,400 (2019 est.)

$46,000 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$2,827,918,000,000 (2019 est.)

Inflation rate (consumer prices)

1.7% (2019 est.)

2.4% (2018 est.)

2.6% (2017 est.)

Credit ratings

Fitch rating: AA- (2020)

Moody's rating: Aaa (2020)

Standard & Poors rating: AA (2016)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 0.7% (2017 est.)

industry: 20.2% (2017 est.)

services: 79.2% (2017 est.)

GDP - composition, by end use

household consumption: 65.8% (2017 est.)

government consumption: 18.3% (2017 est.)

investment in fixed capital: 17.2% (2017 est.)

investment in inventories: 0.2% (2017 est.)

exports of goods and services: 30.2% (2017 est.)

imports of goods and services: -31.5% (2017 est.)

Agricultural products

wheat, milk, barley, sugar beet, potatoes, rapeseed, poultry, oats, pork, beef

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

3.4% (2017 est.)

Labor force

35.412 million (2020 est.)

Labor force - by occupation

agriculture: 1.3%

industry: 15.2%

services: 83.5% (2014 est.)

Unemployment rate

3.17% (2019 est.)

2.51% (2018 est.)

Youth unemployment rate (ages 15-24)

total: 11.2%

male: 13%

female: 9.2% (2019 est.)

Population below poverty line

18.6% (2017 est.)

Gini Index coefficient - distribution of family income

34.8 (2016 est.)

33.4 (2010)

Household income or consumption by percentage share

lowest 10%: 1.7%

highest 10%: 31.1% (2012)

Budget

revenues: 1.028 trillion (2017 est.)

expenditures: 1.079 trillion (2017 est.)

Budget surplus (+) or deficit (-)

-1.9% (of GDP) (2017 est.)

Public debt

87.5% of GDP (2017 est.)

87.9% 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 intragovernmental debt; intragovernmental 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

Taxes and other revenues

39.1% (of GDP) (2017 est.)

Fiscal year

6 April - 5 April

Current account balance

-$121.921 billion (2019 est.)

-$104.927 billion (2018 est.)

Exports

$741.95 billion (2020 est.) note: data are in current year dollars

$879.92 billion (2019 est.) note: data are in current year dollars

$882.65 billion (2018 est.) note: data are in current year dollars

Exports - partners

United States 15%, Germany 10%, China 7%, Netherlands 7%, France 7%, Ireland 6% (2019)

Exports - commodities

cars, gas turbines, gold, crude petroleum, packaged medicines (2019)

Imports

$752.77 billion (2020 est.) note: data are in current year dollars

$914.96 billion (2019 est.) note: data are in current year dollars

$916.4 billion (2018 est.) note: data are in current year dollars

Imports - partners

Germany 13%, China 10%, United States 8%, Netherlands 7%, France 6%, Belgium 5% (2019)

Imports - commodities

gold, cars, crude petroleum, refined petroleum, broadcasting equipment (2019)

Reserves of foreign exchange and gold

$150.8 billion (31 December 2017 est.)

$129.6 billion (31 December 2015 est.)

Debt - external

$8,721,590,000,000 (2019 est.)

$8,696,559,000,000 (2018 est.)

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: The information regarding United Kingdom on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of United Kingdom 2022 information contained here. All suggestions for corrections of any errors about United Kingdom 2022 should be addressed to the CIA or the source cited on each page.