Brontekst bekijken van Economy of the United Kingdom

{{Short description|None}}
{{Use dmy dates|date=March 2024}}
{{Use British English|date=February 2024}}<!--Paragraph 1/4: Introduction - Key international comparators:-->
{{Infobox economy
| country = the United Kingdom
| image = Greenwich_and_Canary_Wharf_(3)_-_2022-04-24.jpg
| image_size = 300
| caption = [[Greenwich]] looking towards [[Canary Wharf]], part of [[London]]'s central business district, one of the major [[financial centres]] of the world
| currency = [[Pound sterling|Pound sterling (GBP, £)]]
| fixed exchange = 
| year = [[Fiscal year#United Kingdom|1 April to 31 March]]{{efn|6 April – 5 April for personal tax}}
| organs = [[WTO]], [[G-20]], [[G7]], [[CPTPP]] and [[OECD]]
| group = {{plainlist|
* [[Developed country|Developed/Advanced]]<ref>{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2023/April/groups-and-aggregates |title=Groups and Aggregates Information |website=[[International Monetary Fund]] |access-date=13 February 2024}}</ref>
* [[High-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |website=[[World Bank]] |access-date=13 February 2024}}</ref>
* [[Welfare state]]<ref name="UK_welfare"/><ref name="Kenworthy"/>  
}}
| population = 67,596,281 (2022)<ref name="ONS mid-year pop est">{{cite web |url=https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/datasets/populationestimatesforukenglandandwalesscotlandandnorthernireland |title=Estimates of the population for the UK, England, Wales, Scotland, and Northern Ireland |date=26 March 2024 |website=[[Office for National Statistics]] |access-date=12 April 2024}}</ref>
| gdp = {{plainlist|
* {{increase}} $3.495 trillion ([[GDP (nominal)|nominal]]; {{abbr|2024f|2024 forecast}})<ref name="IMFWEODE">{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2024/April/weo-report?c=112,&s=NGDPD,PPPGDP,NGDPDPC,PPPPC,&sy=2022&ey=2029&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=World Economic Outlook Database |website=[[International Monetary Fund]] |date=16 April 2024 |access-date=16 April 2024}}</ref>
* {{increase}} $4.029 trillion ([[Purchasing power parity|PPP]]; {{abbr|2024f|2024 forecast}})<ref name="IMFWEODE"/> 
}}
| gdp rank = {{plainlist|
* [[List of countries by GDP (nominal)|6th (nominal; 2023)]]
* [[List of countries by GDP (PPP)|9th (PPP; 2023)]]
}}
| growth = {{plainlist|   
* {{Increase}} 4.3%&nbsp;(2022)<ref name="IMF GDP growth">{{cite web |url=https://www.imf.org/external/datamapper/NGDP_RPCH@WEO/GBR |title=Real GDP Growth |website=International Monetary Fund |access-date=23 May 2024}}</ref>
* {{Increase}} 0.1%&nbsp;({{abbr|2023f|2023 forecast}})<ref name="IMF GDP growth" />
* {{Increase}} 0.5%&nbsp;({{abbr|2024f|2024 forecast}})<ref name="IMF GDP growth" />
* {{Increase}} 1.5%&nbsp;({{abbr|2025f|2025 forecast}})<ref name="IMF GDP growth" />
}}
| per capita = {{plainlist|
* {{increase}} $51,075 (nominal; {{abbr|2024f|2024 forecast}})<ref name="IMFWEODE"/>
* {{increase}} $58,880 (PPP; {{abbr|2024f|2024 forecast}})<ref name="IMFWEODE"/> 
}}
| per capita rank = {{plainlist|
* [[List of countries by GDP per capita (nominal)|21st (nominal; 2024)]]
* [[List of countries by GDP per capita (PPP)|27th (PPP; 2024)]]
}}
| cpi = {{decrease}} 71 out of 100 points (2023)<ref name="ti_2023">{{cite web |url=https://www.transparency.org/en/cpi/2023 |date=30 January 2024 |title=Corruption Perceptions Index |website=[[Transparency International]] |access-date=12 May 2024 |archive-date=30 January 2024 |archive-url=https://web.archive.org/web/20240130062042/https://www.transparency.org/en/cpi/2023 |url-status=live }}</ref> ([[Corruption Perceptions Index#Ranking over Time|20th]])
| sectors = 
| components = 
| inflation = {{decreasePositive}} 2.3% (Apr 2024)<ref>{{cite web |title=Consumer price inflation, UK: April 2024 |url=https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/april2024 |website=[[Office for National Statistics]] |date=22 May 2024 |access-date=22 May 2024}}</ref>
| bankrate = {{IncreaseNeutral}} 5.25% (Dec 2023)<ref>{{cite web |url=https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate |title=Interest rates and Bank Rate |website=[[Bank of England]] |date=14 December 2023 |access-date=14 February 2024}}</ref>
| poverty = {{increaseNegative}} 21% (2023){{efn|name=poverty|Relative low income after housing costs}}<ref name="HBAI">{{cite web |url=https://www.gov.uk/government/statistics/households-below-average-income-for-financial-years-ending-1995-to-2023/households-below-average-income-an-analysis-of-the-uk-income-distribution-fye-1995-to-fye-2023#low-income-indicators |title=Households Below Average Income: an analysis of the UK income distribution: FYE 1995 to FYE 2023 |date=21 March 2024 |website=[[gov.uk]] |publisher=[[HM Government]] |access-date=23 May 2024}}</ref>
| risk of poverty = 
| gini = {{decreasePositive}} 35.4 {{color|darkorange|medium}} (2021)<ref>{{Cite web |title=Income inequality |url=https://data.oecd.org/inequality/income-inequality.htm |access-date=12 February 2024 |website=OECD Data |publisher=[[OECD]]}}</ref>
| hdi = {{plainlist|
* {{increase}} 0.940 {{color|darkgreen|very high}} HDI (2022)<ref name="ukhdi">{{Cite web |date=13 March 2024 |title=Human Development Report 2023/2024 |url=https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf|url-status=live |archive-url=https://web.archive.org/web/20240313164319/https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf |archive-date=13 March 2024 |access-date=21 April 2024 |publisher=[[United Nations Development Programme]] |language=en}}</ref> ([[List of countries by Human Development Index|15th]])
* {{increase}} 0.865 {{color|darkgreen|very high}} IHDI (2022)<ref name="ukhdi"/>}} ([[List of countries by inequality-adjusted HDI|12th]])
| labor = 32,997,000 / 74.5% in employment (Jan–Mar 2024){{efn|name=labourforce|In employment and aged 16 or over (quantity) or aged 16–64 (percent)}}<ref name="Nomis labour market profile">{{cite web |url=https://www.nomisweb.co.uk/reports/lmp/gor/2092957698/report.aspx |title=Labour Market Profile |author=<!--Not stated--> |website=Nomis |publisher=Office for National Statistics |access-date=22 May 2024}}</ref>
| occupations = {{Collapsible list
 | 26.8% Professional
 | 15.0% Associate professional
 | 10.7% Managers, directors and senior officials
 | 9.6% Administrative and secretarial
 | 9.2% Elementary occupations
 | 8.8% Skilled trades
 | 8.0% Caring, leisure and other service
 | 6.3% Sales and customer service
 | 5.4% Process plant and machine operatives
 | (Jan–Dec 2023){{efn|name=occupations|Percent is a proportion of all persons in employment aged 16 and over}}<ref name="Nomis labour market profile"/>
 }}
| unemployment = 1,486,000 / 4.3% (Jan–Mar 2024){{efn|name=unemployment|Unemployed aged 16 and over. Percent is a proportion of economically active.}}<ref name="Nomis labour market profile"/>
| average gross salary = £681.70 per week (2023){{efn|name=averagesalary|Median gross weekly pay for full time employees resident in the UK}}<ref name="Nomis labour market profile"/>
| average net salary = 
| consumption = 
| gfcf = 
| savings = 
| yield curve = 
| pmi = 
| industries = {{Collapsible list | hlist=yes | [[Machine tool]]s | [[Electrical device|electric power equipment]] | [[Automation|automation equipment]] | [[railway]] 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]]<ref name="CIA World Factbook">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/united-kingdom/#economy |title=United Kingdom |website=[[The World Factbook]] |publisher=[[Central Intelligence Agency]] |access-date=13 February 2024}}</ref> }}
| edbr = 
| exports = {{increase}} £864.5 billion (2023){{efn|name=tradegoodsandservices|Goods and services}}<ref name="UKGovTrade">{{cite web |url=https://www.gov.uk/government/statistics/uk-trade-in-numbers/uk-trade-in-numbers-web-version |title=UK trade in numbers (web version) |website=gov.uk |date=17 May 2024 |access-date=22 May 2024}}</ref> ([[List of countries by exports|5th]])
| export-goods = {{Collapsible list
 | £36.5bn Cars
 | £34.4bn Power generators
 | £26.1bn Medicinal and pharmaceutical products
 | £20.6bn Crude oil
 | £19.8bn Unspecified goods
 | £13.2bn Refined oil
 | £11.8bn Aircraft
 | £11.7bn Scientific instruments
 | £11.3bn Beverages and tobacco
 | £11.1bn Non-ferrous metals
 | '''£394.8bn Total (2023)'''{{efn|name=tradeexcludingservices|Excluding services}}<ref name="UKGovTrade"/>
 }}
| export-partners = {{Collapsible list
 | £191.5bn (22.1%) United States
 | £60.8bn (7.0%) Germany
 | £57.4bn (6.6%) Ireland
 | £53.6bn (6.2%) Netherlands
 | £45.0bn (5.2%) France
 | £31.5bn (3.6%) China
 | £31.2bn (3.6%) Switzerland
 | £25.9bn (3.0%) Belgium
 | £19.9bn (2.3%) Spain
 | £18.5bn (2.1%) Italy
 | £16.5bn (1.9%) Canada
 | £15.8bn (1.8%) India
 | £15.7bn (1.8%) Hong Kong
 | £14.9bn (1.7%) Singapore
 | £14.6bn (1.7%) Australia
 | £14.3bn (1.7%) United Arab Emirates
 | £13.8bn (1.6%) Japan
 | £13.1bn (1.5%) Saudi Arabia
 | £12.1bn (1.4%) Luxembourg
 | £11.3bn (1.3%) Sweden
 | '''(2023)'''{{efn|name=tradegoodsandservices|Goods and services}}<ref name="UKGovTrade"/>
 }}
| imports = {{decreasePositive}} £897.9 billion (2023){{efn|name=tradegoodsandservices|Goods and services}}<ref name="UKGovTrade"/> ([[List of countries by imports|6th]])
| import-goods = {{Collapsible list
 | £40.2bn Cars
 | £28.2bn Refined oil
 | £26.6bn Crude oil
 | £26.4bn Power generators
 | £25.4bn Medicinal and pharmaceutical products
 | £21.2bn Gas
 | £21.2bn Miscellaneous electrical goods
 | £16.9bn Telecoms and sound equipment
 | £15.7bn Clothing
 | £14.3bn Other manufactures (consumer)
 | '''£581.5bn Total (2023)'''{{efn|name=tradeexcludingservices|Excluding services}}<ref name="UKGovTrade"/>
 }}
| import-partners = {{Collapsible list
 | £119.4bn (13.3%) United States
 | £89.2bn (9.9%) Germany
 | £65.1bn (7.2%) Netherlands
 | £60.2bn (6.7%) France
 | £58.8bn (6.5%) China
 | £44.2bn (4.9%) Spain
 | £32.4bn (3.6%) Italy
 | £32.0bn (3.6%) Ireland
 | £31.9bn (3.6%) Belgium
 | £30.2bn (3.4%) Norway
 | £23.2bn (2.6%) India
 | £20.5bn (2.3%) Poland
 | £19.6bn (2.2%) Switzerland
 | £16.0bn (1.8%) Turkey
 | £14.5bn (1.6%) Sweden
 | £13.7bn (1.5%) Japan
 | £9.8bn (1.1%) United Arab Emirates
 | £9.8bn (1.1%) Hong Kong
 | £9.8bn (1.1%) Canada
 | £8.9bn (1.0%) Denmark
 | '''(2023)'''{{efn|name=tradegoodsandservices|Goods and services}}<ref name="UKGovTrade"/>
 }}
| FDI = {{unbulleted list|item_style=margin:0
|Inward: £2.002&nbsp;trillion
|Outward: £1.769&nbsp;trillion
|(2021)<ref name="UKGovTrade"/> }}
| current account = £−78.3 billion (2022)<ref name="Balance of payments">{{Cite web |last=McCrae |first=Richard |date=31 October 2023 |title=UK Balance of Payments, The Pink Book: 2023 |url=https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/bulletins/unitedkingdombalanceofpaymentsthepinkbook/2023 |access-date=13 February 2024 |website=Office for National Statistics}}</ref>
| gross external debt = £7.572 trillion (2023)<ref>{{Cite web |date=28 March 2024 |title=IMF BoP IIP UK gross external debt NSA £m |url=https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/timeseries/zaus/ukea |access-date=12 April 2024 |website=Office for National Statistics}}</ref> ([[List of countries by external debt|2nd]])
| NIIP = £−244.4 billion (2022)<ref name="Balance of payments"/>
| debt = £2.690 trillion / 98% of GDP (2023/24)<ref name="House of Commons Budget Deficit">{{Cite web |last=Keep |first=Matthew |date=21 May 2024 |title=The budget deficit: a short guide |url=https://commonslibrary.parliament.uk/research-briefings/sn06167/ |access-date=22 May 2024 |website=[[House of Commons Library]]}}</ref>
| balance = £−121 billion / 4.4% of GDP (2023/24)<ref name="House of Commons Budget Deficit"/>
| revenue = £1.095 trillion (2023/24)<ref name="House of Commons Budget Deficit"/>
| expenses = £1.216 trillion (2023/24)<ref name="House of Commons Budget Deficit"/>
| aid = $19.1 billion (2023){{efn|[[Official development assistance]], donor}}<ref>{{Cite web |title=Official development assistance (ODA) |url=https://www.oecd.org/dac/financing-sustainable-development/development-finance-standards/official-development-assistance.htm |access-date=22 May 2024 |website=OECD}}</ref>
| credit = {{Collapsible list
 | [[S&P Global Ratings]]:<ref name="Sovereigns rating list">{{cite web | url=https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3074437 | title=United Kingdom 'AA/A-1+' Ratings Affirmed; Outlook Stable |date=20 October 2023 | website=S&P Global Ratings | access-date=13 February 2024}}</ref>
 | AA (Domestic)
 | AA (Foreign)
 | AAA (T&C Assessment)
 | Outlook: Stable
 | 20 October 2023
----
 | [[Moody's]]:<ref name="Moody's">{{cite news |title=Moody's boosts view of UK after mini-Budget chaos 
 |date=20 October 2023 |work=BBC News |url=https://www.bbc.co.uk/news/business-67175072 |access-date=13 February 2024}}</ref>
 | Aa3
 | Outlook: Stable
 | 20 October 2023
----
 | [[Fitch Ratings]]:<ref name="fitch">{{cite web|url=https://www.fitchratings.com/entity/united-kingdom-80442209 |title=United Kingdom |website=Fitch Ratings |access-date=22 May 2024}}</ref>
 | AA-
 | Outlook: Stable
 | 22 March 2024
----
 | Scope Ratings:<ref name="Scope Ratings">{{cite web|url=https://www.scoperatings.com/ratings-and-research/rating/EN/175585 |title=Scope affirms United Kingdom's credit ratings at AA with a Stable Outlook |website=Scope Ratings |date=3 November 2023 |access-date=13 February 2024}}</ref>
 | AA
 | Outlook: Stable
 | 3 November 2023
 }}
| reserves = {{Collapsible list
 | Gross reserves (Apr 2024):<ref name="Foreign Reserves">{{Cite web |date=3 May 2024 |title=HMT statistical release: UK official holdings of international reserves |url=https://www.gov.uk/government/collections/statistical-release-uk-official-holdings-of-international-reserves |access-date=22 May 2024 |website=gov.uk}}</ref>
 | UK Government: $180.2 billion
 | Bank of England: $27.1 billion
----
 | Net reserves (Apr 2024):<ref name="Foreign Reserves" />
 | UK Government: $86.9 billion
 | Bank of England: $0.015 billion
 }}
| cianame = united-kingdom
| spelling = 
| usebelowbox = no
| presentUS$asdefault = no
}}
The '''economy of the United Kingdom''' is a [[Developed country|highly developed]] [[social market economy]].<ref name="adamsmith" /><ref name="ftms" /><ref>{{Cite journal|doi = 10.1162/jinh_a_01448|title = The Origins of the British Welfare State|year = 2019|last1 = Thane|first1 = Pat|journal = The Journal of Interdisciplinary History|volume = 50|issue = 3|pages = 427–433|s2cid = 208223636|doi-access = free}}</ref> It is the [[List of countries by GDP (nominal)|sixth-largest national economy]] in the world measured by nominal [[gross domestic product]] (GDP), [[List of countries by GDP (PPP)|ninth-largest]] by [[purchasing power parity]] (PPP), and [[List of countries by GDP (nominal) per capita|twenty-first]] by [[nominal GDP per capita]], constituting 3.1% of nominal [[world GDP]].<ref name="pwc.com/gx-projections">{{cite web|url=http://www.pwc.com/gx/en/issues/economy/global-economy-watch/projections.html|website=PWC|title=Global Economy Watch - Projections > Real GDP / Inflation > Share of 2016 world GDP|access-date=23 June 2017}}</ref> The [[United Kingdom]] constitutes 2.3% of world GDP by purchasing power parity (PPP).<ref name="20315-4">{{Cite book |last1=Thane |first1=P. |title=New Directions in Economic and Social History |year=1989 |isbn=978-0-333-49569-8 |pages=143–154 |chapter=The British Welfare State: Its Origins and Character |doi=10.1007/978-1-349-20315-4_12}}</ref><ref name="pwc.com/gx-projections" />

The United Kingdom has one of the most [[Trade-to-GDP ratio|globalised]] economies<ref>{{cite web|title=KOF Globalization Index|url=http://globalization.kof.ethz.ch/|access-date=5 September 2012|publisher=Globalization.kof.ethz.ch}}</ref> and comprises [[Economy of England|England]], [[Economy of Scotland|Scotland]], [[Economy of Wales|Wales]] and [[Economy of Northern Ireland|Northern Ireland]].<ref name="ONS Geography Guide">{{cite web |url=https://geoportal.statistics.gov.uk/datasets/a-beginners-guide-to-uk-geography-2023/about |title=A Beginners Guide to UK Geography (2023) |author=<!--Not stated--> |date=24 August 2023 |website=Open Geography Portal |publisher=Office for National Statistics |access-date=9 December 2023}}</ref> In 2022, the United Kingdom was the [[List of countries by exports|fifth-largest exporter]]<ref name="World Bank exporters">{{cite web |url=https://data.worldbank.org/indicator/BX.GSR.GNFS.CD |title=Exports of goods and services (BoP, current US$) |website=World Bank |access-date=14 February 2024}}</ref> in the world and the [[List of countries by imports|fourth-largest importer]].<ref name="World Bank importers">{{cite web |url=https://data.worldbank.org/indicator/BM.GSR.GNFS.CD |title=Imports of goods and services (BoP, current US$) |website=World Bank |access-date=14 February 2024}}</ref> It also had the fourth-largest [[List of countries by FDI abroad|outward]] [[foreign direct investment]],<ref name="World Bank FDI outflow">{{cite web |url=https://data.worldbank.org/indicator/BM.KLT.DINV.CD.WD |title=Foreign direct investment, net outflows (BoP, current US$) |website=World Bank |access-date=14 February 2024}}</ref> and the thirteenth-largest [[List of countries by received FDI|inward]] foreign direct investment.<ref name="World Bank FDI inflow">{{cite web |url=https://data.worldbank.org/indicator/BX.KLT.DINV.CD.WD |title=Foreign direct investment, net inflows (BoP, current US$) |website=World Bank |access-date=14 February 2024}}</ref> In 2022, the United Kingdom's trade with the [[European Union]] accounted for 42% of the country's exports and 48% of its imports.<ref>{{Cite web |last=Ward |first=Matthew |date=11 May 2023 |title=Statistics on UK-EU trade |website=House of Commons Library |access-date=13 February 2024 |url=https://commonslibrary.parliament.uk/research-briefings/cbp-7851/ }}</ref> The United Kingdom has a highly efficient and strong [[Welfare state in the United Kingdom|social security system]], which comprises [[Welfare state#Effects|roughly 24.5% of GDP]].<ref name="Kenworthy">{{Cite journal |jstor = 3005973|title = Do Social-Welfare Policies Reduce Poverty? A Cross-National Assessment|journal = Social Forces|volume = 77|issue = 3|pages = 1119–1139|last1 = Kenworthy|first1 = Lane|year = 1999|doi = 10.2307/3005973|url = http://www.lisdatacenter.org/wps/liswps/188.pdf|archive-url = https://web.archive.org/web/20130810134045/http://www.lisdatacenter.org/wps/liswps/188.pdf|archive-date = 10 August 2013|url-status = live}}</ref><ref name="Bradley et al.">{{Cite journal |jstor = 3088901|title = Determinants of Relative Poverty in Advanced Capitalist Democracies|journal = American Sociological Review|volume = 68|issue = 1|pages = 22–51|last1 = Moller|first1 = Stephanie|last2 = Huber|first2 = Evelyne|last3 = Stephens|first3 = John D.|last4 = Bradley|first4 = David|last5 = Nielsen|first5 = François|year = 2003|doi = 10.2307/3088901}}</ref><ref name="UK_welfare">{{Cite web | url=http://stats.oecd.org/Index.aspx?DataSetCode=SOCX_AGG | title=Social Expenditure – Aggregated data|work=[[OECD]] }}</ref>     

<!--Paragraph 2/4: Macro and micro description of present-day economy including key sectors and regional variations:-->
The [[service sector]] dominates, contributing 82% of GDP;<ref name="SN02787">{{Cite web |last=Harari |first=Danie |date=13 April 2023 |title=A3: Components of GDP |url=https://researchbriefings.files.parliament.uk/documents/SN02787/SN02787.pdf |access-date=24 April 2023 |website=[[House of Commons Library]]}}</ref> the [[Financial services industry of the United Kingdom|financial services industry]] is particularly important, and [[London]] is the second-largest [[financial centre]] in the world.<ref>{{cite news|url=https://www.cnbc.com/2019/09/19/new-york-beats-london-again-as-the-worlds-top-financial-center.html|title=New York stretches lead over London as the world's top financial center, survey shows|date=19 September 2019|first=David|last=Reid|website=CNBC}}</ref> [[Edinburgh]] was ranked 17th in the world, and 6th in Europe for its financial services industry in 2021.<ref>{{Cite web|title=GFCI 27 Rank - Long Finance|url=https://www.longfinance.net/programmes/financial-centre-futures/global-financial-centres-index/gfci-27-explore-data/gfci-27-rank/|access-date=29 August 2020|website=www.longfinance.net}}</ref> The United Kingdom's technology sector is valued at US$1 trillion, third behind the United States and China.<ref>{{cite web|url=https://www.verdict.co.uk/brexit-delayed-uk-tech-scenes-1tn-valuation-industry-leaders-say/|title='Brexit delayed UK tech scene's $1tn valuation,' industry leaders say|first=Eric|last=Johansson|date=29 March 2022|work=Verdict}}</ref> The [[aerospace industry in the United Kingdom]] is the second-largest national aerospace industry.<ref>{{cite web|url=https://www.adsgroup.org.uk/facts/facts-figures-2017/|title=Facts and Figures 2017|access-date=25 June 2017|date=12 June 2017|first=Laura|last=Wipfer|publisher=ADS Group}}</ref> Its [[Pharmaceutical industry in the United Kingdom|pharmaceutical industry]], the tenth-largest in the world,<ref>{{cite news|url=https://www.theguardian.com/business/2014/apr/22/pharmaceutical-uk-research-and-development-employment|title=Pharmaceutical industry drives British research and innovation|website=The Guardian|first=Angela|last=Monaghan|date=22 April 2014|access-date=25 June 2017}}</ref> plays an important role in the economy. Of the world's 500 largest companies, 18 are headquartered in the UK.<ref>{{Cite web |title=Global 500 |url=https://fortune.com/global500/2022/ |access-date=28 August 2022 |website=Fortune |language=en}}</ref> The economy is boosted by [[North Sea oil|North Sea oil and gas]] production; its reserves were estimated at 2.5&nbsp;billion barrels in 2021,<!-- Value changes constantly. --><ref name="CIA World Factbook"/> although it has been a net importer of oil since 2005.<ref>{{cite web|url=https://www.gov.uk/government/statistical-data-sets/crude-oil-and-petroleum-production-imports-and-exports-1890-to-2011|title=Crude oil and petroleum: production, imports and exports 1890 to 2015|work=Department for Business, Energy & Industrial Strategy|date=25 August 2016|access-date=18 October 2016}}</ref> There are significant regional variations in prosperity, with [[South East England]] and [[North East Scotland (Scottish Parliament electoral region)|North East Scotland]] being the richest areas per capita. The size of [[Economy of London|London's economy]] makes it the wealthiest city by GDP per capita in Europe.<ref>{{cite web|url=https://ec.europa.eu/growth/tools-databases/regional-innovation-monitor/base-profile/london|title=London - Internal Market, Industry, Entrepreneurship and SMEs|website=European Commission|date=23 July 2010}}</ref> In 2021, the UK spent [[List of sovereign states by research and development spending|around 2.9% of GDP]] on advance [[research and development]].<ref>{{cite web |website=Organisation for Economic Co-operation and Development |url=https://data.oecd.org/rd/gross-domestic-spending-on-r-d.htm |title=Gross domestic spending on R&D |access-date=3 May 2024}}</ref> 

<!--Paragraph 3/4: History:-->
In the 18th century, Britain was the first nation to [[industrialise]].<ref>{{cite book|url=https://books.google.com/books?id=kKGgoNo4un0C&pg=PA503|title=Western Civilization: Ideas, Politics, and Society|first1=Marvin|last1=Perry|first2=Margaret C.|last2=Jacob|first3=Myrna|last3=Chase|first4=James R.|last4=Jacob|location=Boston|publisher=Houghton Mifflin Harcourt|year=2009|edition=9th|page=503|isbn=978-0-547-14701-7}}</ref><ref>{{cite web |url=http://www.frbsf.org/economics/conferences/0211/crafts.pdf |title=Productivity Growth In The Industrial Revolution |access-date=8 February 2014 |archive-date=25 October 2005 |archive-url=https://web.archive.org/web/20051025012316/http://www.frbsf.org/economics/conferences/0211/crafts.pdf |url-status=dead }}</ref><ref>{{cite web|url=http://econ.tau.ac.il/minicourses/Mokyr/floud-johnson.pdf |title=Accounting for the Industrial Revolution |access-date=26 December 2012 |url-status=dead|archive-url=https://web.archive.org/web/20130514065058/http://econ.tau.ac.il/minicourses/Mokyr/floud-johnson.pdf |archive-date=14 May 2013 }}</ref> During the 19th&nbsp;century, through its expansive [[British Empire|colonial empire]] and technological superiority, Britain had a preeminent role in the global economy,<ref>{{cite book|last=Ferguson|first=Niall|year=2004|title=Empire, The rise and demise of the British world order and the lessons for global power|url=https://archive.org/details/empire00nial|url-access=registration|publisher=Basic Books|isbn=0-465-02328-2}}</ref> accounting for 9.1% of the world's GDP in 1870.<ref name="Maddison2006">{{cite book|first=Angus|last=Maddison|title=The World Economy|url=https://books.google.com/books?id=3NKSC0cgNroC|year=2006|publisher=Development Centre of the Organisation for Economic Co-operation and Development|isbn=978-92-64-02261-4|page=263}}</ref> The [[Second Industrial Revolution]] was also taking place rapidly in the United States and the [[German Empire]]; this presented an increasing economic challenge for the UK, leading into the 20th century. The cost of fighting both the [[World war|First and Second World Wars]] further weakened the UK's relative position. Despite a relative decline in its global dominance, in the 21st century the UK retains the ability to project significant power and influence around the world.<ref name="CIA World Factbook"/><ref name="theworkfoundation">{{cite web|url=http://www.theworkfoundation.com/assets/docs/publications/290_plan%20for%20growth%20in%20the%20knowledge%20economy.pdf|date=28 June 2011|title=A plan for growth in the knowledge economy|first1=Charles|last1=Levy|first2=Andrew|last2=Sissons|first3=Charlotte|last3=Holloway|publisher=The Work Foundation|access-date=25 September 2014|url-status=dead|archive-url=https://web.archive.org/web/20130602062616/http://www.theworkfoundation.com/assets/docs/publications/290_plan%20for%20growth%20in%20the%20knowledge%20economy.pdf|archive-date=2 June 2013}}</ref><ref>{{cite web |url=http://www.bis.gov.uk/files/file11034.pdf |title=A Regional Perspective on the Knowledge Economy in Great Britain |access-date=8 February 2014 |url-status=dead|archive-url=https://web.archive.org/web/20130921054412/http://www.bis.gov.uk/files/file11034.pdf |archive-date=21 September 2013 }}</ref><ref>{{cite web|last=Bolshaw |first=Liz |url=http://www.ft.com/intl/cms/s/0/161c9dac-622a-11e1-872e-00144feabdc0.html#axzz2DidWhMJB |archive-url=https://ghostarchive.org/archive/20T3N |archive-date=10 December 2022 |url-access=subscription |url-status=live |title=The future of work is the knowledge economy |publisher=FT.com |date=29 February 2012 |access-date=1 February 2013}}</ref>

<!--Paragraph 4/4: Government involvement, economic management, currency and primary memberships:-->Government involvement is primarily exercised by [[His Majesty's Treasury]], headed by the [[Chancellor of the Exchequer]], and the [[Department for Business and Trade]]. Since 1979, management of the economy has followed a broadly [[laissez-faire]] approach.<ref name="adamsmith">{{cite web|url=https://www.adamsmith.org/s/privatization-revisited1.pdf|date=13 October 2010|title=Privatization Revisited|first=Nigel|last=Hawkins|access-date=25 September 2014}}</ref><ref name="ftms">{{cite web|url=http://www.ftms.edu.my/pdf/Download/UndergraduateStudent/BusinessEconomics/BC215001S%20-%20BE%20Key%20Text%20-%20Applied%20Economics.pdf|date=16 July 2011|title=Applied Economics|first1=Alan|last1=Griffiths|first2=Stuart|last2=Wall|access-date=25 September 2014|url-status=dead|archive-url=https://web.archive.org/web/20130620120524/http://www.ftms.edu.my/pdf/Download/UndergraduateStudent/BusinessEconomics/BC215001S%20-%20BE%20Key%20Text%20-%20Applied%20Economics.pdf|archive-date=20 June 2013}}</ref><ref>{{cite web|url=http://www.dspace.cam.ac.uk/bitstream/1810/413/1/wp9901.pdf |title=A survey of the liberalisation of public enterprises in the UK since 1979|access-date=8 February 2014}}</ref><ref>{{cite web|url=http://www.oecd.org/gov/regulatorypolicy/44955878.pdf |title=Acknowledgements |access-date=8 February 2014}}</ref><ref name="adamsmith2">{{cite web|url=http://www.adamsmith.org/sites/default/files/images/pdf/privatization_reviving_the_momentum.pdf|date=4 April 2008|title=Privatization – Reviving the Momentum|first=Nigel|last=Hawkins|publisher=Adam Smith Institute, London|access-date=25 September 2014|url-status=dead|archive-url=https://web.archive.org/web/20130601233926/http://www.adamsmith.org/sites/default/files/images/pdf/privatization_reviving_the_momentum.pdf|archive-date=1 June 2013}}</ref><ref name="auckland">{{cite web|url=http://docs.business.auckland.ac.nz/Doc/NZ-Auckland-paper-fnl-hodge.pdf|date=28 October 2011|title=Revisiting State and Market through Regulatory Governance: Observations of Privatisation, Partnerships, Politics and Performance|first=Graeme|last=Hodge|access-date=25 September 2014|archive-date=21 September 2013|archive-url=https://web.archive.org/web/20130921053822/http://docs.business.auckland.ac.nz/Doc/NZ-Auckland-paper-fnl-hodge.pdf|url-status=dead}}</ref> The [[Bank of England]] is the UK's [[central bank]], and since 1997 its [[Monetary Policy Committee (United Kingdom)|Monetary Policy Committee]] has been responsible for setting [[official bank rate|interest rates]], [[quantitative easing]], and [[forward guidance]].

==History==
{{Main|Economic history of the United Kingdom}}

===1945 to 1979===
The WWII net losses in British national wealth amounted to 18.6% (£4.595 billion) of the prewar wealth (£24.68 billion), at 1938 prices.<ref>{{cite book|chapter=The United Kingdom: 'Victory at all costs' |first1=Stephen |last1=Broadberry |first2=Peter |last2=Howlett|title=The economics of World War II: Six great powers in international comparison|editor-last=Harrison|editor-first=Michael|publisher=Cambridge University Press|date=1998| page=69|url=http://ndl.ethernet.edu.et/bitstream/123456789/13137/1/300%20.%20Mark_Harrison.pdf}}</ref> After the Second World War, [[Attlee ministry|a new Labour government]] fully nationalised the [[Bank of England]], civil aviation, telephone networks, railways, gas, electricity, and the coal, iron and steel industries, affecting 2.3 million workers.<ref name="Parker2009">{{cite book|first=David|last=Parker|title=The Official History of Privatisation: The Formative Years 1970–1987|url=https://books.google.com/books?id=6m98AgAAQBAJ&pg=PA6|volume=1|year=2009|publisher=Routledge|isbn=978-1-134-03140-5|page=7}}</ref> 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.<ref>{{cite journal|title=Unemployment statistics from 1881 to the present day|first1=James|last1=Denman|first2=Paul|last2=McDonald|publisher=The Government Statistical Office|year=1996|journal=Labour Market Trends|volume=104|issue=15–18}}</ref> The annual rate of growth between 1960 and 1973 averaged 2.9%, although this figure was far behind some other European countries such as [[French Fourth Republic|France]], [[West Germany]] and [[Italy]].<ref name="DowDow2000">{{cite book|author1=J. Christopher R. Dow|first2=Christopher|last2=Dow|title=Major Recessions: Britain and the World, 1920-1995|url=https://books.google.com/books?id=pmaXSKBqMjcC|year=2000|publisher=Oxford University Press|isbn=978-0-19-924123-1}}</ref>

Deindustrialisation meant the closure of operations in mining, heavy industry, and manufacturing, resulting in the loss of highly paid working-class jobs.<ref>{{Cite journal | last = High | first = Steven | title = "The wounds of class": a historiographical reflection on the study of deindustrialization, 1973–2013 | journal = [[History Compass]] | volume = 11 | issue = 11 | pages = 994–1007 | publisher = [[Wiley-Blackwell|Wiley]] | doi = 10.1111/hic3.12099 | date = November 2013 }}</ref> 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.<ref name="Gat2008">{{cite book|first=Azar|last=Gat|title=War in Human Civilization|url=https://books.google.com/books?id=S6gSDAAAQBAJ&pg=PA519|year=2008|publisher=Oxford University Press|isbn=978-0-19-923663-3|page=519}}</ref> Overseas competition, lack of innovation, trade unionism, the welfare state, loss of the [[British Empire]], and cultural attitudes have all been put forward as explanations.<ref name="Laybourn1999">{{cite book|first=Keith|last=Laybourn| author-link = Keith Laybourn |title=Modern Britain Since 1906: A Reader|url=https://books.google.com/books?id=VJpiVcZbaSEC&pg=PA230|year=1999|publisher=I.B.Tauris|isbn=978-1-86064-237-1|page=230}}</ref> 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.<ref>{{cite web |publisher=Department for Business, Energy & Industrial Strategy|title=Historical coal data: coal production, availability and consumption 1853 to 2015 |year=2016|url=https://www.gov.uk/government/statistical-data-sets/historical-coal-data-coal-production-availability-and-consumption-1853-to-2011}}</ref>

During the [[1973 oil crisis]] (which saw oil prices quadruple),<ref name="cambridge">{{cite book|title=The Cambridge Economic History of Modern Britain|editor-first1=Roderick|editor-last1=Floud|editor-first2=Paul|editor-last2=Johnson|first=Stephen|last=Broadberry|year=2003|page=66|volume=3|isbn=978-0-521-52738-5|publisher=Cambridge University Press|url=https://books.google.com/books?id=ugx3XIkE-mEC}}</ref> 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 (UK)|Labour Party]] under [[Harold Wilson]], which had previously governed from 1964 to 1970. Wilson formed a [[minority government]] in March 1974 after the [[February 1974 United Kingdom general election|general election on 28 February]] ended in a [[hung parliament]]. Wilson secured a three-seat overall majority in a [[October 1974 United Kingdom general election|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&nbsp;billion from the [[International Monetary Fund]]. [[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.<ref>{{Cite journal |last1=Matthews |first1=Kent |last2=Minford |first2=Patrick |last3=Nickell |first3=Stephen |last4=Helpman |first4=Elhanan |date=1987 |title=Mrs Thatcher's Economic Policies 1979-1987 |url=https://www.jstor.org/stable/1344621 |journal=Economic Policy |volume=2 |issue=5 |pages=59–101 |doi=10.2307/1344621 |jstor=1344621 |issn=0266-4658}}</ref> Following the discovery of large [[North Sea]] oil reserves, the UK became a net exporter of oil by the end of the 1970s, which contributed to a massive appreciation of the pound, making exports in general more expensive and imports cheaper. Oil prices doubled between 1979 and 1980, further reducing manufacturing profitability.<ref name="cambridge"/> After 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 [[1979 United Kingdom general election|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. 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,<ref>Phillip Inman, "Reports of recovery much exaggerated, says CBI", The Guardian (UK), 15 June 2009, p. 21.</ref> 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.<ref name="imf">{{cite web |url=http://www.imf.org/external/pubs/ft/weo/2006/01/data/dbcselm.cfm?G=2001 |title=Edit/Review Countries |publisher=Imf.org |date=29 April 2003 |access-date=5 September 2012 |url-status=dead|archive-url=https://web.archive.org/web/20100611172746/http://www.imf.org/external/pubs/ft/weo/2006/01/data/dbcselm.cfm?G=2001 |archive-date=11 June 2010 }}</ref><ref name=ons>The ONS figures, reproduced by the Local Government Association, [http://www.lga.gov.uk/lga/aio/1215871 "From Recession to recovery"], November 2008. Retrieved 13-05-09, p. 7, are slightly lower, giving 4.5% in 1988. {{webarchive |url=https://web.archive.org/web/20111102003004/http://www.lga.gov.uk/lga/aio/1215871 |date=2 November 2011 }}</ref>

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]].<ref name="HowBritainChanged">{{cite web|url=https://www.theguardian.com/politics/datablog/2013/apr/08/britain-changed-margaret-thatcher-charts|work=The Guardian|title=How Britain changed under Margaret Thatcher|date=8 April 2013|access-date=7 April 2016}}</ref> The rise in unemployment coincided with the [[early 1980s recession|early 1980s global recession]], after which UK GDP did not reach its pre-recession rate until 1983. In spite of this, Thatcher [[1983 United Kingdom general election|was re-elected]] in June 1983 with a landslide majority. Inflation had fallen to 3.7%, while interest rates were relatively high at 9.56%.<ref name="HowBritainChanged"/> The increase in unemployment was largely due to the government's [[economic policy]] which resulted in the closure of outdated factories and [[Coal mining in the United Kingdom#Decline in volume|coal pits]]. Manufacturing in England and Wales declined from around 38% of jobs in 1961 to around 22% in 1981.<ref>{{cite web|url=http://www.ons.gov.uk/ons/rel/census/2011-census-analysis/170-years-of-industry/170-years-of-industrial-changeponent.html |archive-url=http://webarchive.nationalarchives.gov.uk/20160105160709/http://www.ons.gov.uk/ons/rel/census/2011-census-analysis/170-years-of-industry/170-years-of-industrial-changeponent.html |url-status=dead|archive-date=5 January 2016 |title=170 Years of Industrial Change across England and Wales |date=5 June 2013 |author=ONS |website=The National Archives |access-date=6 December 2016 }}</ref> This trend continued for most of the 1980s, with newer industries and the service sector enjoying significant growth. Many jobs were also lost as manufacturing became more efficient and fewer people were required to work in the sector. Unemployment had fallen below 3&nbsp;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&nbsp;million.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/uk_politics/vote_2005/basics/4393313.stm |title=UK Politics &#124; The Basics &#124; past_elections &#124; 1983: Thatcher triumphs again |work=BBC News |date=5 April 2005 |access-date=5 September 2012}}</ref>

Britain's economy slid into [[Early 1990s recession|another global recession]] in late 1990; it shrank by a total of 6% from peak to trough,<ref name="2009dec22">{{cite news|url=https://www.theguardian.com/business/2009/dec/22/britain-still-in-recession|title=UK recession longest and deepest since war, says ONS|work=The Guardian|first=Larry|last=Elliott|date=22 December 2009|access-date=9 July 2009}}</ref> 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.<ref name="HowBritainChanged"/> 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,<ref name="HowBritainChanged"/> although the popularity of the Conservative government had failed to improve with the economic upturn. The government won a fourth successive election in 1992 under [[John Major]], who had succeeded Thatcher in November 1990, but soon afterwards came [[Black Wednesday]], which damaged the Conservative government's reputation for economic competence, and from that stage onwards, the [[Labour Party (UK)|Labour Party]] was ascendant in the opinion polls, particularly in the immediate aftermath of [[Tony Blair]]'s election as party leader in July 1994 after the sudden death of his predecessor [[John Smith (Labour Party leader)|John Smith]].

Despite two recessions, wages grew consistently by around 2% per year in [[real terms]] from 1980 until 1997, and continued to grow until 2008.<ref>{{cite web|url=http://blogs.lse.ac.uk/politicsandpolicy/real-wages-and-living-standards-the-latest-uk-evidence/|title=Real wages and living standards: the latest UK evidence|date=6 April 2015|access-date=31 October 2016|first=Stephen|last=Machin|publisher=London School of Economics}}</ref>

===1997 to 2009===
In May 1997, Labour, led by Tony Blair, won the general election after 18 years of Conservative government.<ref>{{cite news|last=Wheeler |first=Brian |url=http://news.bbc.co.uk/1/hi/uk_politics/8149630.stm |title=UK &#124; UK Politics &#124; Election countdown – 1990s style |work=BBC News |date=21 July 2009 |access-date=5 September 2012}}</ref> The Labour Government inherited a strong economy with low inflation,<ref>{{cite news|url=https://www.theguardian.com/news/datablog/2009/mar/09/inflation-economics|title=UK inflation since 1948|first1=Simon|last1=Rogers|first2=Ami|last2=Sedghi|date=12 November 2013|access-date=2 June 2017|website=The Guardian}}</ref> falling unemployment,<ref>ONS unemployment rate bulletin</ref> and a [[Current account (balance of payments)|current account]] surplus.<ref name="OECD1998">{{cite book|author=OECD|title=OECD Economic Surveys: United Kingdom 1998|url=https://books.google.com/books?id=G3_WAgAAQBAJ&pg=PA20|date=16 July 1998|publisher=OECD Publishing|isbn=978-92-64-15145-1|page=20}}</ref> Blair ran on a platform of [[New Labour]] which was characterised largely by the continuation of neo-liberal economic policies, but also supporting a strong welfare state. In Britain it was largely viewed as a combination of socialist and capitalist policies, being dubbed '[[Third Way]]'.<ref>{{Cite web|url=https://www.theguardian.com/politics/2003/feb/10/labour.uk1|title = A brief history of the third way|website = [[TheGuardian.com]]|date = 10 February 2003}}</ref> 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. 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.<ref name="ons" /> [[Annual growth rate]]s averaged 2.68% between 1992 and 2007,<ref name="imf" /> with the finance sector accounting for a greater part than previously. The period saw one of the highest GDP growth rates of any developed economy and the strongest of any European nation.<ref>{{cite news|last=Davis |first=Evan |url=http://news.bbc.co.uk/1/hi/uk_politics/6643601.stm |title=Blair's surprising economic legacy |work=BBC News |date=10 May 2007 |access-date=5 September 2012}}</ref> At the same time, [[household debt]] rose from £420&nbsp;billion in 1994 to £1&nbsp;trillion in 2004 and £1.46&nbsp;trillion in 2008 – more than the entire GDP of the UK.<ref>{{cite book|first=Mark|last=Horsley|title=The Dark Side of Prosperity: Late Capitalism's Culture of Indebtedness|url=https://books.google.com/books?id=QMfVBgAAQBAJ&pg=PA31|date=28 March 2015|publisher=Ashgate Publishing|isbn=978-1-4724-3657-3|page=31}}</ref>

This extended period of growth ended in [[Calendar year#Quarters|Q2]] of 2008 when the United Kingdom entered a [[Late 2000s recession|recession]] brought about by the [[global financial crisis]]. The UK was particularly vulnerable to the crisis because its financial sector was the most highly [[leveraged]] of any major economy.<ref name="GiudiceKuenzel2012">{{cite book|first1=Gabriele|last1=Giudice|first2=Robert|last2=Kuenzel|first3=Tom|last3=Springbett|title=UK Economy: The Crisis in Perspective|url=https://books.google.com/books?id=02hd8pJhDAMC&pg=PA205|year=2012|publisher=Routledge|isbn=978-1-136-31210-6|page=205}}</ref> 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. By mid-2009, [[HM Treasury]] had a 70.33% controlling shareholding in RBS, and a 43% shareholding, through the [[UK Financial Investments Limited]], in [[Lloyds Banking Group]]. The Great Recession, as it came to be known, saw unemployment rise from just over 1.6&nbsp;million in January 2008 to nearly 2.5&nbsp;million by October 2009.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/7304330.stm |title=UK unemployment falls by 32,000 |work=BBC News |date=19 March 2008 |access-date=5 September 2012}}</ref><ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/8415683.stm |title=Unemployment rise continues to slow |work=BBC News |date=16 December 2009 |access-date=5 September 2012}}</ref>

In August 2008 the IMF warned that the country's outlook had worsened due to a twin shock: financial turmoil and rising commodity prices.<ref>{{cite web|url=http://www.imf.org/external/pubs/ft/survey/so/2008/CAR081108A.htm |title=Twin Global Shocks Dent United Kingdom Outlook |publisher=Imf.org |date=11 August 2008 |access-date=5 September 2012}}</ref> Both developments harmed the UK more than most developed countries, as it obtained revenue from exporting financial services while running deficits in goods and commodities, including food. In 2007, the UK had the world's third largest [[List of countries by current account balance|current account deficit]], due mainly to a large deficit in manufactured goods. In May 2008, the IMF advised the UK government to broaden the scope of fiscal policy to promote external balance.<ref>{{cite web|url=http://www.imf.org/external/np/ms/2008/052308.htm |title=United Kingdom – 2008 Article IV Consultation Concluding Statement of the Mission, 23 May 2008 |publisher=Imf.org |date=23 May 2008 |access-date=5 September 2012}}</ref> The UK's output per hour worked was on a par with the average for the "old" [[Statistics relating to enlargement of the European Union#1995 enlargement|EU-15]] countries.<ref name="europa2">{{cite web|url=http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1996,39140985&_dad=portal&_schema=PORTAL&screen=detailref&language=en&product=STRIND_ECOBAC&root=STRIND_ECOBAC/ecobac/eb022|title=Labour productivity per hour worked|publisher=epp.eurostat.ec.europa.eu|access-date=25 September 2014|url-status=dead|archive-url=https://web.archive.org/web/20120520171740/http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1996%2C39140985&_dad=portal&_schema=PORTAL&screen=detailref&language=en&product=STRIND_ECOBAC&root=STRIND_ECOBAC%2Fecobac%2Feb022|archive-date=20 May 2012}}</ref>

===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.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/7925620.stm|title=UK interest rates lowered to 0.5%|date=5 March 2009|work=BBC News|access-date=2 October 2016}}</ref> 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&nbsp;II]].<ref name="2009dec22"/><ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/8378129.stm|title=UK economy shrinks less than thought|work=BBC News|date=25 November 2009}}</ref> Support for Labour slumped during the recession, and the [[2010 United Kingdom general election|general election of 2010]] resulted in [[Cameron–Clegg coalition|a coalition government]] being formed by the Conservatives and the [[Liberal Democrats (UK)|Liberal Democrats]].

In 2011, [[Household debt|household]], financial, and business debts stood at 420% of GDP in the UK.{{efn|Compared to 279% in Japan, 253% in France, 209% in the United States, 206% in Canada, and 198% in Germany.}}<ref name="Meyer2012">{{cite book|first=Annette|last=Meyer|title=Value Added / 14 National Labor Forces|url=https://books.google.com/books?id=xTJDv05aRIYC&pg=PA170|year=2012|publisher=Dorrance Publishing|isbn=978-1-4349-7375-7|page=170}}</ref> As the world's [[Heavily indebted poor countries|most indebted country]], spending and investment were held back after the recession, creating [[economic malaise]]. However, it was recognised that [[government borrowing]], which rose from 52% to 76% of GDP, had helped to avoid a [[Great Depression in the United Kingdom|1930s-style depression]].<ref>{{cite news|url=https://www.bbc.co.uk/news/business-15820601|title=UK's debts 'biggest in the world'|first=Robert|last=Peston|website=BBC News|date=21 November 2011|access-date=2 June 2017}}</ref> Within three years of the general election, government cuts aimed at reducing the budget deficit had led to [[public sector]] job losses well into six figures, but the [[private sector]] enjoyed strong jobs growth.

The 10 years following the Great Recession were characterised by extremes. In 2015, employment was at its highest since records began,<ref>{{cite news|last1=Stewart| first1=Heather| last2=Wintour| first2=Patrick| title=UK employment rate hits highest level since records began| url=https://www.theguardian.com/business/2015/feb/18/uk-employment-rate-hits-highest-level-since-records-began| access-date=8 June 2015|newspaper=The Guardian| date=18 February 2015}}</ref> and GDP growth had become the fastest in the [[Group of Seven (G7)]] and Europe,<ref>{{cite news| last=Wholehouse| first=Matthew| title= UK has fastest-growing economy, International Monetary Fund says| url=https://www.telegraph.co.uk/finance/economics/10988849/UK-has-fastest-growing-economy-International-Monetary-Fund-says.html |archive-url=https://ghostarchive.org/archive/20220111/https://www.telegraph.co.uk/finance/economics/10988849/UK-has-fastest-growing-economy-International-Monetary-Fund-says.html |archive-date=11 January 2022 |url-access=subscription |url-status=live|date=24 July 2014|  newspaper=The Telegraph |access-date=8 June 2015| location=London}}{{cbignore}}</ref> but [[workforce productivity]] was the worst since the 1820s, with any growth attributed to a fall in working hours.<ref>{{cite news|url=https://www.ft.com/content/edcb9224-f1ff-11e7-b220-857e26d1aca4 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/edcb9224-f1ff-11e7-b220-857e26d1aca4 |archive-date=10 December 2022 |url-access=subscription |url-status=live|title=UK productivity grows at quickest pace in six years|first=Gavin|last=Jackson|date=5 January 2018|website=Financial Times|access-date=6 January 2018}}</ref> Output per hour worked was 18% below the average for the rest of the G7.<ref>{{cite web|url=https://www.theguardian.com/business/2016/feb/18/uk-productivity-gap-widens-to-worst-level-since-records-began|title=UK productivity gap widens to worst level since records began|work=The Guardian|date=18 February 2016|access-date=7 April 2016}}</ref> Real wage growth was the worst since the 1860s, and the [[Governor of the Bank of England]] described it as a lost decade.<ref>{{cite news|url=https://www.ft.com/content/c0c36268-bb0d-11e6-8b45-b8b81dd5d080 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/c0c36268-bb0d-11e6-8b45-b8b81dd5d080 |archive-date=10 December 2022 |url-access=subscription|title= UK suffering 'first lost decade since 1860s', Carney says|date=6 December 2016|access-date=6 December 2016|first=Chris|last=Giles|newspaper=Financial Times}}{{subscription required}}</ref> 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%.<ref>{{cite news|url=https://www.theguardian.com/money/2016/jul/27/uk-joins-greece-at-bottom-of-wage-growth-league-tuc-oecd|title= UK joins Greece at bottom of wage growth league|date=27 July 2016|access-date=31 October 2016|newspaper=The Guardian|first1=Katie|last1=Allen|first2=Larry|last2=Elliott}}</ref> For 2015 as a whole,<ref>{{cite news|url=https://www.telegraph.co.uk/business/2016/03/31/uks-current-account-deficit-jumps-to-eye-watering-record-high/ |archive-url=https://ghostarchive.org/archive/20220111/https://www.telegraph.co.uk/business/2016/03/31/uks-current-account-deficit-jumps-to-eye-watering-record-high/ |archive-date=11 January 2022 |url-access=subscription |url-status=live|title=UK's current account deficit jumps to 'eye watering' record high|date=31 March 2016|access-date=7 April 2016|work=The Telegraph}}{{cbignore}}</ref> the [[Current account (balance of payments)|current account]] deficit rose to a record high of 5.2% of GDP (£96.2bn),<ref>{{cite news|url=https://www.bbc.co.uk/news/business-35931968|title=UK current account deficit at new high|date=31 March 2016|access-date=7 July 2016|work=BBC News}}</ref> the highest in the developed world.<ref>{{cite news|url=http://news.sky.com/story/the-16322bn-current-account-deficit-mystery-10411813|publisher=Sky News|title=The £22bn current account deficit mystery|date=5 July 2016|access-date=10 July 2016|first=Ed|last=Conway}}</ref> In Q4 2015, it exceeded 7%, a level not witnessed during peacetime since records began in 1772.<ref name="aep">{{cite news|url=https://www.telegraph.co.uk/business/2016/03/31/britain-courts-fate-on-brexit-with-worst-external-deficit-in-his/ |archive-url=https://ghostarchive.org/archive/20220111/https://www.telegraph.co.uk/business/2016/03/31/britain-courts-fate-on-brexit-with-worst-external-deficit-in-his/ |archive-date=11 January 2022 |url-access=subscription |url-status=live|title=Britain courts fate on Brexit with worst external deficit in history|first=Ambrose|last=Evans-Pritchard|newspaper=The Telegraph|date=31 March 2016|access-date=23 October 2016}}{{cbignore}}</ref> The UK relied on foreign investors to plug the shortfall in its [[balance of payments]].<ref>{{cite news|url=https://www.theguardian.com/business/2016/mar/31/uk-economy-growth-record-trade-deficit|title= Current account deficit hits record high as GDP revised higher|first=Katie|last=Allen|newspaper=The Guardian|date=21 March 2016|access-date=23 October 2016}}</ref> Homes had become [[affordability of housing in the United Kingdom|less affordable]], a problem exacerbated by QE, without which house prices would have fallen by 22%, according to the BoE's own analysis.<ref>{{cite magazine|title=After the Fall|date=9 September 2018|magazine=The Sunday Times Magazine|first=John|last=Lanchester|page=29|url=https://www.thetimes.co.uk/article/after-the-fall-john-lanchester-on-the-decade-of-doom-that-followed-the-2008-financial-crash-cxscrmmj9}}</ref>

A rise in unsecured household debt added to questions over the [[Sustainability#Economic sustainability|sustainability]] of the [[economic recovery]] in 2016.<ref>{{cite news|url=https://www.independent.co.uk/money/is-britain-facing-a-debt-disaster-a6808086.html|title=Is the UK facing a debt disaster?|first=Simon|last=Read|date=13 January 2016|access-date=8 July 2016|work=Independent}}</ref><ref>{{cite news|url=https://www.theguardian.com/business/2015/dec/09/economic-recovery-reliant-consumer-debt-bcc-downgrades-growth-forecast|title=Recovery 'too reliant on consumer debt' as BCC downgrades forecast|date=9 December 2015|access-date=8 July 2016|first=Heather|last=Stewart|work=The Guardian}}</ref><ref>{{cite news|url=https://next.ft.com/content/5d6ecd5c-afc8-11e5-b955-1a1d298b6250|work=Financial Times|title=Economists' forecasts: Fears over balance of recovery|date=3 January 2016|access-date=8 July 2016|first1=Emily|last1=Cadman|first2=Chris|last2=Giles}}{{subscription required}}</ref> The BoE insisted there was no cause for alarm,<ref>{{cite news|url=https://www.telegraph.co.uk/finance/economics/12095431/Britains-recovery-is-not-driven-by-debt-says-Mark-Carney.html |archive-url=https://ghostarchive.org/archive/20220111/https://www.telegraph.co.uk/finance/economics/12095431/Britains-recovery-is-not-driven-by-debt-says-Mark-Carney.html |archive-date=11 January 2022 |url-access=subscription |url-status=live|title=Britain's recovery is not driven by debt, says Mark Carney|date=12 January 2016|access-date=8 July 2016|first=Mehreen|last=Khan|work=The Telegraph}}{{cbignore}}</ref> despite having said two years earlier that the recovery was "neither balanced nor sustainable".<ref>{{cite news|url=https://www.theguardian.com/business/2014/feb/12/interest-rates-economic-recovery-unsustainable|title=Interest rates on hold as Bank says recovery 'unsustainable'|date=12 February 2014|access-date=8 July 2016|work=The Guardian|first1=Larry|last1=Elliott|first2=Angela|last2=Monaghan}}</ref>{{efn|It was still very unbalanced,<ref>{{cite news|url=https://www.theguardian.com/business/2017/jan/01/uk-economy-will-fare-better-in-2017-than-forecasters-predict|title=Why the UK economy could fare better in 2017 than forecasters predict|first=Katie|last=Allen|date=1 January 2017|access-date=13 June 2017|website=The Guardian}}</ref> with [[Consumption (economics)|consumption]] accounting for 100% of growth in that year.<ref>{{cite news|url=http://www.newstatesman.com/politics/june2017/2017/04/economic-slowdown-another-reason-theresa-may-called-early-election|title=The economic slowdown is another reason Theresa May called an early election|first=George|last=Eaton|date=28 April 2017|access-date=8 June 2017|website=New Statesman}}</ref>}} Following the [[2016 United Kingdom European Union membership referendum|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. It also increased the amount of QE since the start of the Great Recession to £435bn.<ref>{{cite news|title=UK interest rates cut to 0.25%|url=https://www.bbc.co.uk/news/business-36976528|work=BBC News|date=4 August 2016|access-date=2 October 2016}}</ref> By Q4 2018 net borrowing in the UK was the highest in the OECD at 5% of GDP.{{efn|For comparison, Germany saved 9% of GDP and Russia saved 5%, while Japan, Greece, Spain, Italy and China saved between 1% and 3%.}} Households had been in deficit for an unprecedented nine quarters in a row. Since the Great Recession, the country was no longer making a profit on its foreign investments.<ref>{{cite news|url=https://www.ft.com/content/9afd1596-61d3-11e9-a27a-fdd51850994c |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/9afd1596-61d3-11e9-a27a-fdd51850994c |archive-date=10 December 2022 |url-access=subscription|title=UK's low national savings rate raises fear of trouble ahead|date=22 April 2019|first=Chris|last=Giles|website=Financial Times}}</ref>

===2020 to present===
{{See also|Economic impact of the COVID-19 pandemic in the United Kingdom|2021–present United Kingdom cost of living crisis}}
In March 2020, in response to the [[COVID-19 pandemic in the United Kingdom|COVID-19 pandemic]], a temporary ban was imposed on non-essential business and travel in the UK. The BoE cut the interest rate to 0.1%.<ref>{{Cite news|url=https://www.bbc.co.uk/news/business-51962982|title = Coronavirus: UK interest rates cut to lowest level ever|work = BBC News|date = 19 March 2020}}</ref> Economic growth had been weak before the crisis, with zero growth in Q4 2019.<ref>{{cite web|url=https://www.ons.gov.uk/economy/grossdomesticproductgdp/timeseries/ihyq|title=Gross Domestic Product: Quarter on Quarter growth: CVM SA %|website=Office for National Statistics|date=31 March 2020|access-date=10 May 2020}}</ref> By May, 23% of the British workforce was furloughed (temporarily laid off). Government schemes were launched to help affected workers.<ref>{{cite news|url=https://www.theguardian.com/business/2020/may/04/over-a-fifth-of-british-employees-furloughed-in-last-fortnight|title=Nearly a quarter of British employees furloughed in last fortnight|first=Larry|last=Elliott|date=4 May 2020|access-date=11 May 2020|website=The Guardian}}</ref> In the first half of 2020, GDP shrank by 22.6%,<ref>{{cite news|url=https://www.theguardian.com/business/2020/aug/12/uk-economy-covid-19-plunges-into-deepest-slump-in-history|date=12 August 2020|website=The Guardian|title=Covid-19: UK economy plunges into deepest recession since records began|first=Richard|last=Partington}}</ref> the deepest recession in UK history and worse than any other [[G7]] or European country.<ref>{{cite news|url=https://www.ft.com/content/c8b172e2-8f70-4118-9e81-423e9a4b6839 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/c8b172e2-8f70-4118-9e81-423e9a4b6839 |archive-date=10 December 2022 |url-access=subscription |url-status=live|title=UK economy suffers worst slump in Europe in second quarter|date=12 August 2020|first=Delphine|last=Strauss|website=Financial Times}}</ref> 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.<ref>{{cite web|url=https://www.bankofengland.co.uk/monetary-policy/quantitative-easing|website=Bank of England|title=Quantitative Easing|access-date=16 April 2020}}</ref> Overall, GDP shrank by 9.9% in 2020, making it the worst contraction since the [[Great Frost]] paralysed the economy in 1709.<ref>{{cite news|url=https://www.ft.com/content/96e19afd-88b3-4e8d-bc3e-a72bd1f60d3c |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/96e19afd-88b3-4e8d-bc3e-a72bd1f60d3c |archive-date=10 December 2022 |url-access=subscription|title=UK suffers biggest drop in economic output in 300 years|date=12 February 2021|first1=Valentina|last1=Romei|first2=Chris|last2=Giles}}</ref>

In 2021 consumer price inflation (CPI) began rising sharply due to higher energy and transport costs.<ref>{{cite web|url=https://commonslibrary.parliament.uk/economic-update-economy-was-back-to-pre-pandemic-level-before-omicron/|title=Economic update: Economy was back to pre-pandemic level before Omicron|date=25 January 2022|first=Matt|last=Keep|website=House of Commons Library}}</ref> With annual inflation approaching 11%, the BoE gradually increased the base rate to 2.25% during the first nine months of 2022.<ref>{{cite news|url=https://www.theguardian.com/business/2022/sep/22/bank-of-england-interest-rate-rise-latest|title=UK in recession, says Bank of England as it raises interest rates to 2.25%|first=Richard|last=Partington|work=The Guardian|date=22 September 2022}}</ref> The UK was not alone: global inflation rates were the highest in 40 years owing to the pandemic and [[Russia's invasion of Ukraine]],<ref>{{cite news|url=https://www.ft.com/content/48d674a8-ae51-4f75-909c-0e5b6e38475c |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/48d674a8-ae51-4f75-909c-0e5b6e38475c |archive-date=10 December 2022 |url-access=subscription|title=Global economic warning lights are flashing red|author=The Editorial Board|work=Financial Times|date=16 October 2022}}</ref> though {{as of|September 2022|lc=on}}, the country had the highest domestic electricity prices and amongst the highest gas prices in Europe, contributing to [[2021–present United Kingdom cost of living crisis|a cost of living crisis]].<ref>{{cite news|url=https://www.ft.com/content/57c66a89-b046-4c3e-a8aa-d9099bd4da20|title=How do household energy bills compare across Europe?|first1=Alan|last1=Smith|first2=David|last2=Sheppard|work=Financial Times|date=7 September 2022|accessdate=22 December 2022}}</ref> In February 2022 the BoE began [[quantitative tightening]] (a reversal of QE) by not renewing mature government bonds and in November started offloading bonds to private investors,<ref>{{cite news|url=https://www.ft.com/content/64e5dcdd-42a8-4013-a3bd-75a62cf8e6dc |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/64e5dcdd-42a8-4013-a3bd-75a62cf8e6dc |archive-date=10 December 2022 |url-access=subscription|title=Bank of England begins selling bonds as it unwinds QE programme|first=Tommy|last=Stubbington|date=1 November 2022|work=Financial Times}}</ref> signalling the end to an era of easy borrowing.<ref>{{cite news|url=https://www.bbc.co.uk/news/business-63474176|title=Bank makes history as it reverses quantitative easing|first=Ben|last=King|date=1 November 2022|work=BBC News}}</ref><ref>{{cite news|url=https://www.theguardian.com/business/2022/nov/01/bank-of-england-begins-selling-government-bonds|title=Bank of England begins selling government bonds|date=1 November 2022|work=The Guardian}}</ref> In October 2022 year-on-year CPI was at 11.1%, the worst for 41 years, food price inflation was 16.2%, gas prices 130% and electricity 66%. 

In August 2023, the [[Office for National Statistics|ONS]] revised its analysis of Britain's economic performance and said that Britain's GDP had surpassed its pre-COVID-19 size in the final quarter of 2021, a much earlier recovery from the pandemic than previously estimated and ahead of other big European countries. The British economy was 0.6% larger in the fourth quarter of 2021 than in the final quarter of 2019, compared with an earlier estimate that it was 1.2% smaller.<ref>{{Cite news |last=Milliken |first=David |date=1 September 2023 |title=UK economy surpassed pre-COVID size in late 2021, new data shows |language=en |work=Reuters |url=https://www.reuters.com/world/uk/uk-statistics-office-revises-up-strength-post-covid-bounce-back-2023-09-01/ |access-date=2 September 2023}}</ref>

== Economic charts ==
<gallery widths="200px" heights="200px">

File:UK GDP year-on-year growth rates.png|GDP year-on-year growth, 1949–2020
File:UK percentage of workforce by sector.png|Workforce distribution in Great Britain 1841–1911, and in England and Wales 1921–2011
File:UK unemployment rate.png|Unemployment rates, 1881–2017
File:UK recession recoveries.png|Recovery periods for each recession (measured as GDP per capita), 1920–2009
File:UK output per hour worked.png|Productivity, 1971–2019
File:UK interest rate since 1800.png|Interest rates, 1800–2020
File:Trade in goods and services balance (U.K.).png|Balance of trade, 1948–2020
File:UK oil and petroleum trade balance.png|Balance of trade in crude oil and petroleum, 1890–2015
File:United Kingdom bonds.webp|United Kingdom bonds [[Inverted yield curve]] 1988–1991

</gallery>

==Government spending and economic management==
{{see also|Budget of the United Kingdom|United Kingdom national debt}}
[[File:Bank-of-England.jpg|thumb|The Bank of England, London]]
Government involvement in the economy is primarily exercised by [[HM Treasury]], headed by the Chancellor of the Exchequer. In recent years, the UK economy has been managed in accordance with principles of market liberalisation and low taxation and regulation. Since 1997, the Bank of England's [[Monetary Policy Committee (United Kingdom)|Monetary Policy Committee]], headed by the Governor of the Bank of England, has been responsible for setting [[official bank rate|interest rates]] at the level necessary to achieve the overall inflation target for the economy that is set by the Chancellor each year.<ref>{{cite web |url=http://www.bankofengland.co.uk/about/more_about.htm |title=More About the Bank |access-date=8 August 2008 |url-status=dead |archive-url=https://web.archive.org/web/20080312060011/http://www.bankofengland.co.uk/about/more_about.htm |archive-date=12 March 2008 }} Bank of England – Retrieved 8 August 2008</ref> 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.<ref name=csr>{{cite web|url=https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/203826/Spending_review_2010.pdf|title=Comprehensive Spending Review 2010|access-date=23 August 2015|publisher=HM Treasury}}</ref> In July 2007, the UK had [[government debt]] at 35.5% of [[GDP]].<ref name=Borrowing/> As a result of the [[2007–2008 financial crisis|2007–2010 financial crisis]] and the [[Late-2000s recession in Europe#United Kingdom|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 [[2008 United Kingdom bank rescue package|series of bank bailouts]].<ref name=csr/><ref name=Borrowing>"[https://www.theguardian.com/news/datablog/2009/mar/01/government-borrowing-economy1 Britain's public debt since 1974]" ''The Guardian'', 1 March 2009</ref> In terms of [[Debt-to-GDP ratio|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&nbsp;billion, equivalent to 77.3% of GDP.<ref name="ons2">{{cite web|url=http://www.ons.gov.uk/ons/dcp171778_371085.pdf|date=25 September 2014|title=Statistical Bulletin Office for National Statistics: Public Sector Finances, June 2014|access-date=25 September 2014}}</ref> For the financial year of 2013–2014 public sector net borrowing was £93.7&nbsp;billion.<ref name="ons2"/> This was £13.0&nbsp;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]]). Local government is financed by grants from central government funds, [[business rates]], [[council tax]], and, increasingly, fees and charges such as those from [[decriminalised parking enforcement|on-street parking]]. Central government revenues are mainly from [[income tax]], [[national insurance]] contributions, [[Value Added Tax (United Kingdom)|value added tax]], [[United Kingdom corporation tax|corporation tax]] and [[fuel duty]].

==Sectors==
===Agriculture===
{{main|Agriculture in the United Kingdom|Forestry in the United Kingdom}}
[[File:Farming, Turville - geograph.org.uk - 470533.jpg|alt=|thumb|Agriculture in the UK is [[Intensive agriculture|intensive]], highly [[Mechanised agriculture|mechanised]], and efficient by European standards.]]
Agriculture in the UK is [[intensive agriculture|intensive]], highly [[mechanised agriculture|mechanised]], and efficient by European standards. The country produces around 65% of its food needs. 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.<ref>DEFRA, p. 148.</ref> 

Agriculture added gross value of £12.18 billion to the economy in 2018, and around 467,000 people were employed in agriculture, hunting, forestry and fishing. It contributes around 0.5% of the UK's national GDP.<ref name="BB2020">{{cite web |last=Department for Environment, Food and Rural Affairs |date=21 October 2022 |title=National Statistics, Chapter 4: Accounts |url=https://www.gov.uk/government/statistics/agriculture-in-the-united-kingdom-2021/chapter-4-accounts |accessdate=24 April 2023 |website=Defra}}</ref> Around two-thirds of production by value is devoted to livestock, and one-third to [[agronomy|arable]] crops.<ref>DEFRA, pp. 41–42.</ref> The agri-food sector as a whole (agriculture and food manufacturing, wholesale, catering, and retail) was worth £120 billion and accounts for 4 million jobs in the UK.<ref>DEFRA, p. 141.</ref>

===Construction===
{{Main|Construction industry of the United Kingdom}}
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.<ref name="BB2020"/>

One of the largest construction projects in the UK in recent years was [[Crossrail]], costing an estimated £19 billion. It was the largest construction project in Europe. Opened in 2022,<ref>{{cite news|url=https://www.standard.co.uk/news/transport/tfl-andy-byford-target-christmas-opening-delayed-crossrail-b931360.html|title=Transport for London chief Andy Byford targets Christmas opening of delayed Crossrail project|first=Ross|last=Lydall|date=23 April 2021|website=Evening Standard}}</ref> it is a new railway line running east to west through London and into the surrounding area, with a branch to [[Heathrow Airport]].<ref>{{cite web|url=http://www.crossrail.co.uk/route/maps/regional-map |archive-url=https://web.archive.org/web/20101024104105/http://www.crossrail.co.uk/route/maps/regional-map |url-status=dead |archive-date=24 October 2010 |title=Crossrail Regional Map |publisher=Crossrail Ltd. |access-date=8 September 2013}}</ref> The main feature of the project is construction of 42&nbsp;km (26&nbsp;mi) of new tunnels connecting stations in central London.<ref>{{cite news |url= https://www.bbc.co.uk/news/uk-16289051 |work=BBC News |title= Crossrail's giant tunnelling machines unveiled |date=2 January 2012}}</ref> [[High Speed 2]] between London and the West Midlands is one of Europe's largest infrastructure projects.<ref>{{Cite web |title=HS2 Overview |url=https://commonslibrary.parliament.uk/research-briefings/cbp-9313/ |website=House of Commons Library}}</ref> [[Crossrail 2]] is a proposed rail route in the South East of England.

===Production industries===
====Electricity, gas and water====
{{Main|Energy in the United Kingdom}}
This sector added gross value of £51.4&nbsp;billion to the economy in 2018.<ref name="BB2020"/> 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.<ref>''Britain moves a step closer to building new nuclear reactors'', [[Financial Times]], 9 January 2008</ref>

====Manufacturing====
{{Main|Manufacturing in the United Kingdom}}
[[File:Rolls-Royce Trent 1000 jet engine.jpg|right|thumb|A [[Rolls-Royce Trent 1000]] jet engine made in the UK]]
In the 1970s, manufacturing accounted for 25 per cent of the economy. 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.<ref>Chris Cook and John Stevenson, ''Longman companion to Britain since 1945'' (1996). pp 167-68.</ref><ref>"UK manufacturers provide a strong foundation for growth in the UK" [https://www.eef.org.uk/campaigning/campaigns-and-issues/manufacturing-facts-and-figures ''EEF'' (2017)]</ref>

Manufacturing has increased in 36 of the last 50 years and was twice in 2007 what it was in 1958.<ref>Hennik Research. [http://www.themanufacturer.com/wp-content/uploads/2017/01/Annual-Manufacturing-Report-2017-Final-Version.pdf ''Annual Manufacturing Report: 2017'' (Dec. 2016)] {{Webarchive|url=https://web.archive.org/web/20170131192050/http://www.themanufacturer.com/wp-content/uploads/2017/01/Annual-Manufacturing-Report-2017-Final-Version.pdf |date=31 January 2017 }}</ref>

In 2011 the UK manufacturing sector generated approximately £140.5&nbsp;billion in gross value added and employed around 2.6&nbsp;million people.<ref name="ons.gov.uk">{{cite web|url=http://www.ons.gov.uk/ons/rel/naa1-rd/united-kingdom-national-accounts/the-blue-book--2013-edition/index.html|title=Release: United Kingdom National Accounts, The Blue Book, 2013 Edition|publisher=[[Office for National Statistics]]|date=31 July 2013 |access-date=13 August 2013}}</ref><ref name=bisdoc10a>{{cite web|url=http://www.bis.gov.uk/assets/biscore/business-sectors/docs/m/10-1333-manufacturing-in-the-uk-an-economic-analysis-of-the-sector.pdf|title=Manufacturing in the UK: An economic analysis of the sector|access-date=25 April 2011|publisher=Department for Business, Innovation & Skills }}</ref> Of the approximately £16&nbsp;billion invested in R&D by UK businesses in 2008, approximately £12&nbsp;billion was by manufacturing businesses.<ref name=bisdoc10a/> In 2008, the UK was the sixth-largest manufacturer in the world measured by value of output.<ref name=pwcmanufact>{{cite web|url=http://www.pwc.co.uk/pdf/UKmanufacturing_300309.pdf|title=The future of UK manufacturing: Reports of its death are greatly exaggerated|access-date=25 April 2011|publisher=PricewaterhouseCoopers|url-status=dead|archive-url=https://web.archive.org/web/20110719235843/http://www.pwc.co.uk/pdf/UKmanufacturing_300309.pdf|archive-date=19 July 2011}}</ref>

In 2008 around 180,000 people in the UK were directly employed in the [[Automotive industry in the United Kingdom|UK automotive manufacturing sector]].<ref name=facts2010>{{cite web|url=http://www.smmt.co.uk/downloads/MotorIndustryFacts.pdf |title=Motor Industry Facts 2010 |access-date=28 February 2011 |publisher=SMMT |url-status=dead|archive-url=https://web.archive.org/web/20101127180805/http://smmt.co.uk/downloads/MotorIndustryFacts.pdf |archive-date=27 November 2010 }}</ref> In that year the sector had a turnover of £52.5&nbsp;billion, generated £26.6&nbsp;billion of exports<ref>{{Cite web|url=https://bizpages.org/countries--UK--United-Kingdom|title=United Kingdom Business Directory &#124; List of Companies|website=bizpages.org}}</ref> and produced around 1.45&nbsp;million passenger vehicles and 203,000 commercial vehicles.<ref name=facts2010/> The UK is a major centre for engine manufacturing, and in 2008 around 3.16&nbsp;million engines were produced in the country.<ref name=facts2010/>

The [[aerospace industry of the UK]] is the second largest aerospace industry in the world (after the United States) and the largest in Europe.<ref name=asd>{{cite web|url=http://www.asd-europe.org/site/fileadmin/user_upload/publications/ASD_Facts_And_Figures_2009.pdf |title=Facts & Figures – 2009 |access-date=13 May 2011 |publisher=Aerospace & Defence Association of Europe |url-status=dead|archive-url=https://web.archive.org/web/20101224004749/http://www.asd-europe.org/site/fileadmin/user_upload/publications/ASD_Facts_And_Figures_2009.pdf |archive-date=24 December 2010 }}</ref><ref name=ads>{{cite web|url=http://www.adsgroup.org.uk/community/dms/download.asp?txtPageLinkDocPK=23948|title=UK Aerospace Industry Survey – 2010|access-date=13 May 2011|publisher=ADS Group|url-status=dead|archive-url=https://web.archive.org/web/20140108105928/https://www.adsgroup.org.uk/community/dms/download.asp?txtPageLinkDocPK=23948|archive-date=8 January 2014}}</ref> The industry employs around 113,000 people directly and around 276,000 indirectly and has an annual turnover of around £20&nbsp;billion.<ref name=ukti>{{cite web|url=http://www.ukti.gov.uk/export/sectors/advancedengineering/aerospace.html|title=Aerospace|access-date=20 October 2010|publisher=UK Trade & Investment|url-status=dead|archive-url=https://web.archive.org/web/20101024134400/http://www.ukti.gov.uk/export/sectors/advancedengineering/aerospace.html|archive-date=24 October 2010}}</ref><ref>{{cite news|url=http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article5477974.ece| title=The Aerospace industry has thousands of jobs in peril|access-date=20 October 2010|newspaper=The Times| date=9 January 2009|location=London|first=David|last=Robertson}}</ref> British companies with a major presence in the industry include [[BAE Systems]] and [[Rolls-Royce plc|Rolls-Royce]] (the world's second-largest aircraft engine maker).<ref>{{cite news| url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aLkb0kL1egto |title=Rolls-Royce Wins $2 Billion Air China, Ethiopian Airlines Deals| publisher=Bloomberg L.P.| access-date=8 September 2010|date=14 November 2009}}</ref><ref>{{citation | url=https://www.hithorizons.com/eu/analyses/country-statistics/united%20kingdom |title=Industry Breakdown of Companies in United Kingdom|website=HitHorizons}}</ref> 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.<ref>{{cite web |title=Airbus in the United Kingdom |url=https://www.airbus.com/company/worldwide-presence/uk.html|access-date=17 December 2019|publisher=Airbus}}</ref>

The [[Pharmaceutical industry in the United Kingdom|pharmaceutical industry]] employs around 67,000 people in the UK and in 2007 contributed £8.4&nbsp;billion to the UK's [[GDP]] and invested a total of £3.9&nbsp;billion in [[research and development]].<ref>{{cite news|url=http://business.timesonline.co.uk/tol/business/industry_sectors/health/article5594350.ece|title=Gordon Brown plans tonic for pharmaceutical industry|access-date=27 October 2010|work=The Times|date=27 January 2009|location=London|first1=Tom|last1=Bawden|first2=David|last2=Rose}}</ref><ref>{{cite web|title=The pharmaceutical industry and market in the UK|url=http://www.abpi.org.uk/industry-info/knowledge-hub/uk-economy/Pages/uk-industry-market.aspx|publisher=The Association of the British Pharmaceutical Industry|access-date=14 December 2014|url-status=dead|archive-url=https://web.archive.org/web/20141214095518/http://www.abpi.org.uk/industry-info/knowledge-hub/uk-economy/Pages/uk-industry-market.aspx|archive-date=14 December 2014}}</ref> In 2007 exports of pharmaceutical products from the UK totalled £14.6&nbsp;billion, creating a trade surplus in pharmaceutical products of £4.3&nbsp;billion.<ref>{{cite web|url=http://www.abpi.org.uk/statistics/intro.asp |title=Facts & Statistics from the pharmaceutical industry |publisher=The Association of the British Pharmaceutical Industry |access-date=27 October 2010 |url-status=dead|archive-url=https://web.archive.org/web/20100918170615/http://www.abpi.org.uk/statistics/intro.asp |archive-date=18 September 2010 }}</ref> The UK is home to [[GlaxoSmithKline]] and [[AstraZeneca]], respectively the world's third- and seventh-largest pharmaceutical companies.<ref name=iht>{{cite news|url=https://www.nytimes.com/2007/02/20/business/worldbusiness/20iht-price.4663653.html|title=British regulator calls for drug pricing overhaul|access-date=27 October 2010|work=The New York Times|date=27 January 2009}}</ref><ref>{{cite news|url=https://money.cnn.com/magazines/fortune/global500/2009/industries/21/index.html |title=Global 500 – Pharmaceuticals|access-date=27 October 2010|work=Fortune|date=20 July 2009}}</ref>

====Mining, quarrying and hydrocarbons====
{{Main|Mining in the United Kingdom|North Sea oil}}
The Blue Book 2013 reports that this sector added gross value of £31.4&nbsp;billion to the UK economy in 2011.<ref name="ons.gov.uk"/> In 2007 the UK had a total energy output of 9.5 quadrillion [[British thermal unit|Btus]] (10 exajoules), of which the composition was oil (38%), natural gas (36%), coal (13%), nuclear (11%) and other renewables (2%).<ref name=eiaoverview>{{cite web|url=http://www.eia.doe.gov/emeu/cabs/United_Kingdom/Profile.html |title=United Kingdom – Quick Facts Energy Overview |publisher=US Energy Information Administration |access-date=4 November 2010 |url-status=dead|archive-url=https://web.archive.org/web/20100918035823/http://www.eia.doe.gov/emeu/cabs/United_Kingdom/Profile.html |archive-date=18 September 2010 }}</ref> In 2009, the UK produced 1.5&nbsp;million barrels per day (bbl/d) of oil and consumed 1.7&nbsp;million bbl/d.<ref name=eiaoil>{{cite web|url=http://www.eia.doe.gov/emeu/cabs/United_Kingdom/Oil.html |title=United Kingdom – Oil |publisher=US Energy Information Administration |access-date=4 November 2010 |url-status=dead|archive-url=https://web.archive.org/web/20100918000348/http://www.eia.doe.gov/emeu/cabs/United_Kingdom/Oil.html |archive-date=18 September 2010 }}</ref> Production is now in decline and the UK has been a net importer of oil since 2005.<ref name=eiaoil/> As of 2010 the UK has around 3.1&nbsp;billion barrels of proven crude oil reserves, the largest of any EU member state.<ref name=eiaoil/>

In 2009 the UK was the 13th largest producer of natural gas in the world and the largest producer in the EU.<ref name=eiagas>{{cite web|url=http://www.eia.doe.gov/emeu/cabs/United_Kingdom/NaturalGas.html |title=United Kingdom – Natural Gas |publisher=US Energy Information Administration |access-date=4 November 2010 |url-status=dead|archive-url=https://web.archive.org/web/20100918011149/http://www.eia.doe.gov/emeu/cabs/United_Kingdom/NaturalGas.html |archive-date=18 September 2010 }}</ref> Production is now in decline and the UK has been a net importer of natural gas since 2004.<ref name=eiagas/> In 2009 the UK produced 19.7&nbsp;million tons of coal and consumed 60.2&nbsp;million tons.<ref name=eiaoverview/> In 2005 it had proven recoverable coal reserves of 171&nbsp;million tons.<ref name=eiaoverview/> It has been estimated that identified onshore areas have the potential to produce between 7&nbsp;billion tonnes and 16&nbsp;billion tonnes of coal through [[Underground coal gasification|underground coal gasification (UCG)]].<ref name="Coal 2">{{cite web|title=Coal Reserves in the United Kingdom |author=The Coal Authority |url=http://www.coal.gov.uk/media//860AD/Response%20to%20Energy%20Review%20-%20Appendix%202.pdf |access-date=23 September 2008 |publisher=The Coal Authority |year=2007 |work=Response to Energy Review |url-status=dead|archive-url=https://web.archive.org/web/20080910154814/http://www.coal.gov.uk/media//860AD/Response%20to%20Energy%20Review%20-%20Appendix%202.pdf |archive-date=10 September 2008 }}</ref> Based on current UK coal consumption, these volumes represent reserves that could last the UK between 200 and 400 years.<ref name="Coal 3">{{cite news|title=England Expert predicts 'coal revolution'|url=http://news.bbc.co.uk/1/hi/england/7046981.stm|access-date=23 September 2008|work=BBC News|date=16 October 2007}}</ref>

The UK is home to a number of large energy companies, including two of the six oil and gas "[[supermajor]]s" – [[BP]] and [[Shell plc]].<ref>{{cite news|url=https://www.telegraph.co.uk/finance/newsbysector/energy/6424030/Let-the-battle-begin-over-black-gold.html |archive-url=https://ghostarchive.org/archive/20220111/https://www.telegraph.co.uk/finance/newsbysector/energy/6424030/Let-the-battle-begin-over-black-gold.html |archive-date=11 January 2022 |url-access=subscription |url-status=live|title=Let the battle begin over black gold|access-date=26 November 2010|work=The Daily Telegraph| date=24 October 2009|location=London|first=Rowena|last=Mason}}{{cbignore}}</ref><ref>{{cite news|url=https://www.bloomberg.com/news/2010-11-25/rba-s-stevens-says-inflation-unlikely-to-fall-much-further.html|title=RBA Says Currency Containing Prices, Rate Level 'Appropriate' in Near Term|access-date=26 November 2010|publisher=Bloomberg L.P.| date=26 November 2010|first=Michael|last=Heath}}</ref> The UK is also rich in a number of natural resources including coal, tin, limestone, iron ore, salt, clay, chalk, gypsum, lead and silica.

===Service industries===
The [[service sector]] is the dominant sector of the UK economy, and it accounted for 82% of GDP in 2023.<ref name="SN02787" />

====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.<ref>{{cite web|date=9 March 2007 |url=http://www.culture.gov.uk/reference_library/media_releases/2132.aspx |title=From the Margins to the Mainstream – Government unveils new action plan for the creative industries |publisher=DCMS |access-date=9 March 2007 |url-status=dead|archive-url=https://web.archive.org/web/20081204131529/http://www.culture.gov.uk/reference_library/media_releases/2132.aspx |archive-date=4 December 2008 }}</ref> Key areas include London and the [[North West of England]], which are the two largest creative industry clusters in Europe.<ref>{{Cite news |title=MediaCityUK – Talent Pool |url=http://www.mediacityuk.co.uk/about-us/talent-pool |work=MediaCityUK |access-date=11 October 2011 |archive-url=https://web.archive.org/web/20110925201145/http://www.mediacityuk.co.uk/about-us/talent-pool |archive-date=25 September 2011 |url-status=dead }}</ref> According to the British Fashion Council, the fashion industry's contribution to the UK economy in 2014 is £26&nbsp;billion, up from £21&nbsp;billion in 2009.<ref name="LFW: Fashion industry worth 26&nbsp;billion pound to UK economy">{{cite web | url=http://www.fashionunited.co.uk/fashion-news/fashion/lfw-fashion-industry-worth-26-billion-pound-to-uk-economy-2014021720108 | title=LFW: Fashion industry worth 26 billion pound to UK economy | publisher=FashionUnited Group | date=17 February 2014 | access-date=17 February 2014}}</ref> The UK is home to the world's largest advertising company, [[WPP plc|WPP]].

====Education, health and social work====
{{Main|Education in the United Kingdom|Healthcare in the United Kingdom}}
[[File:Queen Elizabeth Hospital Birmingham, Edgbaston, Birmingham, England-7March2011.jpg|thumb|The [[Queen Elizabeth Hospital Birmingham]] is a university hospital affiliated with the [[University of Birmingham]]. It has the largest single-floor [[critical care unit]] in the world.]]

According to The Blue Book 2013 the education sector added a gross value of £84.6&nbsp;billion in 2011 whilst human health and social work activities added £104.0&nbsp;billion in 2011.<ref name="ons.gov.uk"/>

In the UK the majority of the healthcare sector consists of the state funded and operated [[National Health Service]] (NHS), which accounts for over 80% of all healthcare spending in the UK and has a workforce of around 1.7&nbsp;million, making it the largest employer in Europe, and putting it amongst the largest employers in the world.<ref>{{cite news| url=https://www.bbc.co.uk/news/magazine-17429786 | work=BBC News | title=Which is the world's biggest employer? | date=20 March 2012}}</ref><ref>{{cite news|url=https://www.theguardian.com/society/2000/nov/19/socialcare.policy|title=Labour gets into bed with private medicine|access-date=11 November 2010|work=The Guardian| date=19 November 2000|location=London}}</ref><ref>{{cite news|url=http://uk.reuters.com/article/idUKL0268287920080703|title=At 60, the NHS needs reality check|access-date=11 November 2010|work=Reuters| date=3 July 2008}}</ref> The NHS operates independently in each of the four [[Countries of the United Kingdom|constituent countries]] of the UK. The [[NHS in England]] is by far the largest of the four parts and had a turnover of £92.5&nbsp;billion in 2008.<ref name="budget2008correction">{{cite web|author=HM Treasury |title=Budget 2008, Corrections to Table C11 |date=24 March 2008 |url=http://www.hm-treasury.gov.uk/d/bud08_corrections.pdf |access-date=27 December 2008 |page=1 |url-status=dead|archive-url=https://web.archive.org/web/20090225001228/http://www.hm-treasury.gov.uk/d/bud08_corrections.pdf |archive-date=25 February 2009 }}</ref>

In 2007/08 higher education institutions in the UK had a total income of £23&nbsp;billion and employed a total of 169,995 staff.<ref name=uukfacts>{{cite web|url=http://www.universitiesuk.ac.uk/Publications/Documents/Facts09.pdf |title=Higher education in facts and figures – Summer 2009 |access-date=29 January 2011 |publisher=Universities UK |url-status=dead|archive-url=https://web.archive.org/web/20100215010603/https://www.universitiesuk.ac.uk/Publications/Documents/Facts09.pdf |archive-date=15 February 2010 }}</ref> 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).<ref name=uukfacts/>

====Financial and business services====
{{main|Financial services in the United Kingdom}}
{{see also|Legal services in the United Kingdom}}

The [[Financial services industry of the United Kingdom|UK financial services industry]] added gross value of £116.4&nbsp;billion to the UK economy in 2011.<ref name="ons.gov.uk"/> The UK's exports of financial and business services make a significant positive contribution towards the country's [[balance of payments]].
[[File:Paternoster Square, London EC2 - geograph.org.uk - 2162659.jpg|thumb|[[Paternoster Square]], home of the London Stock Exchange]]
London is a major centre for [[international business]] and commerce and is one of the three "command centres" of the global economy (alongside [[New York City]] and [[Tokyo]]).<ref>{{Cite book|author=Sassen, Saskia|title=The Global City: New York, London, Tokyo|year=2001|publisher=Princeton University Press|edition=2nd|author-link=Saskia Sassen}}</ref> 

There are over 500 banks with offices in London, and it is the leading international centre for banking, insurance, [[Eurobond (international)|Eurobond]]s, [[foreign exchange]] trading and [[International Petroleum Exchange|energy futures]]. London's financial services industry is primarily based in the [[City of London]] and [[Canary Wharf]]. The City houses the [[London Stock Exchange]], the [[London Metal Exchange]], [[Lloyd's of London]], and the Bank of England. 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]].<ref>[https://web.archive.org/web/20080407040203/http://www.forbes.com/lists/2008/18/biz_2000global08_The-Global-2000_Rank.html "Special Report – The Global 2000"] ''Forbes'', 2 April 2008</ref><ref>[http://www.hsbc.com/1/2/newsroom/news/news-archive-2008/hsbc-tops-forbes-2000-list-of-world-s-largest-companies "HSBC tops Forbes 2000 list of world's largest companies,"] HSBC website, 4 April 2008 {{webarchive |url=https://web.archive.org/web/20130113200650/http://www.hsbc.com/1/2/newsroom/news/news-archive-2008/hsbc-tops-forbes-2000-list-of-world-s-largest-companies |date=13 January 2013 }}</ref> London is also a major centre for other business and professional services, and four of the six largest law firms in the world are headquartered there.<ref>{{cite news|url=http://www.efinancialnews.com/story/2007-07-23/uk-law-firms-reap-rich-rewards-while-americans-strengthen-london-teams-1|title=UK law firms reap rich rewards while Americans strengthen London teams|access-date=11 August 2010|publisher=Financial News| date=23 July 2007}}</ref>

Several other major UK cities have large financial sectors and related services. [[Edinburgh]] has one of the largest financial centres in Europe<ref>{{cite web|url=https://publications.parliament.uk/pa/cm200203/cmhansrd/vo030430/halltext/30430h05.htm#30430h05_spnew0|title=Financial Services Industry|first=Mark|last=Lazarowicz (Labour MP)|date=30 April 2003|publisher=United Kingdom Parliament|access-date=17 October 2008}}</ref> and is home to the headquarters of [[Lloyds Banking Group]], [[NatWest Group]] and [[Standard Life]]. [[Leeds]] is the UK's largest centre for business and financial services outside London,<ref>{{cite news |url=http://www.yorkshireeveningpost.co.uk/news/We39re-leading-the-way-in.2034867.jp |title=Leeds leading the way |newspaper=Yorkshire Evening Post |access-date=25 January 2009 |archive-url=https://web.archive.org/web/20090501062758/http://www.yorkshireeveningpost.co.uk/news/We39re-leading-the-way-in.2034867.jp |archive-date=1 May 2009 |url-status=dead }}</ref><ref name="Leeds Financial Facts and Figures">{{cite web |url=http://www.leedsfinancialservices.org.uk/ |title=Leeds Financial Facts and Figures |publisher=leedsfinancialservices.org.uk |access-date=25 January 2009 |url-status=dead|archive-url=https://web.archive.org/web/20090130014241/http://leedsfinancialservices.org.uk/ |archive-date=30 January 2009 }}</ref><ref name="fdimagazine1">{{cite web|url=http://www.fdimagazine.com/news/fullstory.php/aid/2512/Northern_star.html |title=Northern Star |work=FDI Magazine |access-date=25 January 2009 |url-status=dead|archive-url=https://web.archive.org/web/20090101004224/http://www.fdimagazine.com/news/fullstory.php/aid/2512/Northern_star.html |archive-date=1 January 2009 }}</ref> and the largest centre for legal services in the UK after London.<ref>{{cite news|url=http://www.ft.com/cms/s/77eaffe6-ef2a-11dc-8a17-0000779fd2ac.html |archive-url=https://ghostarchive.org/archive/20221210/http://www.ft.com/cms/s/77eaffe6-ef2a-11dc-8a17-0000779fd2ac.html |archive-date=10 December 2022 |url-access=subscription |title=Leeds Services |newspaper=Financial Times |access-date=25 January 2009}}</ref><ref>{{cite web |url=http://www.lawgazette.co.uk/features/ltbgtyorkshire-gritltbgt |title=Leeds Legal Review |publisher=Law Gazette |access-date=25 January 2009 |url-status=dead|archive-url=https://web.archive.org/web/20090430144958/http://www.lawgazette.co.uk/features/ltbgtyorkshire-gritltbgt |archive-date=30 April 2009 }}</ref><ref>{{cite web |url=http://www.legalweek.com/Articles/1146376/Live+the+Leeds+lifestyle.html |title=Live the Leeds Lifestyle |work=Legal Week Magazine |access-date=25 January 2009 |url-status=dead|archive-url=https://web.archive.org/web/20090429220223/http://www.legalweek.com/Articles/1146376/Live+the+Leeds+lifestyle.html |archive-date=29 April 2009 }}</ref>

According to a series of research papers and reports published in the mid-2010s, Britain's financial firms provide sophisticated methods to [[Money laundering|launder]] billions of pounds annually, including money from the proceeds of [[corruption]] around the world as well as the world's [[Illegal drug trade|drug trade]], thus making the city a global hub for illicit finance.<ref>[http://www.ft.com/cms/s/2/1d805534-1185-11e6-839f-2922947098f0.html Dark money: London's dirty secret] The Financial Times, 11 May 2016.</ref><ref>[https://www.independent.co.uk/news/uk/crime/london-is-now-the-global-money-laundering-centre-for-the-drug-trade-says-crime-expert-10366262.html London is now the global money-laundering centre for the drug trade, says crime expert] The Independent, 4 July 2015.</ref><ref>[http://aa.com.tr/en/analysis-news/cameron-s-corrupt-countries-slip-puts-spotlight-on-uk/571749 Cameron's corrupt countries slip puts spotlight on UK] Anadolu Agency, 13 May 2016.</ref><ref>{{cite web|url=http://russialist.org/russian-money-infects-london/|title=Russian money infects London|date=31 March 2015}}</ref> 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 per cent probably originating from [[Russia]], which implies misreporting by financial institutions, sophisticated tax avoidance, and the UK's "safe-haven" reputation.<ref>{{cite news|url=https://www.reuters.com/article/markets-capital-flows-deutsche-idUKL5N0WC31520150310|title=UK draws billions in unrecorded inflows, much from Russia - study|work=Reuters|date=10 March 2015}}</ref>

====Hotels and restaurants====
The Blue Book 2013 reports that this industry added gross value of £36.6&nbsp;billion to the UK economy in 2011.<ref name="ons.gov.uk"/> [[InterContinental Hotels Group]] (IHG), headquartered in Denham, Buckinghamshire, is currently the world's largest hotelier, owning and operating hotel brands such as [[InterContinental]], [[Holiday Inn]] and [[Crowne Plaza]].

==== Informal ====	
A study in 2014 found that sex work and associated services added over £5 billion to the economy each year.<ref>{{Cite news|title = 'Chip and sin' cash boom for crooks|last = Davenport|first = Justin|date = 9 October 2015|work = London Evening Standard|page = 1}}</ref>

====Public administration and defence====
The Blue Book 2013 reports that this sector added gross value of £70.4&nbsp;billion to the UK economy in 2011.<ref name="ons.gov.uk"/>

====Real estate and renting activities====
{{Main|Real estate in the United Kingdom}}
[[File:Trafford Centre (12777554715).jpg|thumb|The [[Trafford Centre]] shopping complex in [[Manchester]] was sold for £1.6&nbsp;billion in 2011 in the largest property sale in British history.<ref name="largest">{{Cite news |title=Capital Shopping Centres seals £1.6bn Trafford Centre deal despite Simon Property Group's concerns |last=Ruddick |first=Graham |quote=Capital Shopping Centres has sealed the UK's largest ever property transaction after 80pc of shareholders backed its £1.6bn acquisition of the Trafford Centre. |url=https://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/8284524/Capital-Shopping-Centres-seals-1.6bn-Trafford-Centre-deal-despite-Simon-Property-Groups-concerns.html |archive-url=https://ghostarchive.org/archive/20220111/https://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/8284524/Capital-Shopping-Centres-seals-1.6bn-Trafford-Centre-deal-despite-Simon-Property-Groups-concerns.html |archive-date=11 January 2022 |url-access=subscription |url-status=live |newspaper=The Telegraph |date=27 January 2011 |access-date=15 September 2011 |location=London}}{{cbignore}}</ref>]]
Notable real estate companies in the United Kingdom include [[British Land]], [[Landsec]] and the [[Peel Group]]. The UK property market boomed for the seven years up to 2008, and in some areas property trebled in value over that period. The increase in property prices had a number of causes: low interest rates, credit growth, economic growth, rapid growth in buy-to-let [[buy-to-let|property investment]], foreign property investment in London and [[planning restrictions]] on the supply of new housing. 

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.<ref>{{cite web|url=https://www.ons.gov.uk/peoplepopulationandcommunity/housing/bulletins/housingaffordabilityinenglandandwales/1997to2016|title=Housing affordability in England and Wales: 1997 to 2016|date=17 March 2017|access-date=14 June 2017|first=Nigel|last=Henretty|website=ONS}}</ref> Rent has nearly doubled as a share of GDP since 1985, and is now larger than the manufacturing sector. In 2014, rent and [[imputed rent]] – an estimate of how much home-owners would pay if they rented their home – accounted for 12.3% of GDP.<ref>{{cite web|url=http://www.neweconomics.org/press/entry/gdp-boosted-by-158bn-of-phantom-rent-nef-research-reveals|title=GDP boosted by £158bn of 'phantom rent'|publisher=New Economics Foundation|access-date=7 April 2016|archive-url=https://web.archive.org/web/20160420012102/http://www.neweconomics.org/press/entry/gdp-boosted-by-158bn-of-phantom-rent-nef-research-reveals|archive-date=20 April 2016|url-status=dead}}</ref>

====Tourism====
{{Main|Tourism in the United Kingdom}}
[[File:British Museum Dome.jpg|thumb|The [[British Museum]] received 6.2 million visitors in 2019.<ref>{{cite web|url=https://www.visitbritain.org/annual-survey-visits-visitor-attractions-latest-results|website=Visit Britain|title=Annual Survey of Visits to Visitor Attractions: Latest results|date=22 November 2016|accessdate=22 April 2021}}</ref>]]
With over 40 million visits in 2019, inbound tourism contributed £28.5 billion to the British economy, although just over half of that money was spent in London,<ref>{{cite web|url=https://www.visitbritain.org/2019-snapshot|title=Inbound tourism performance - 2019 snapshot|website=VisitBritain|date=28 April 2015|accessdate=22 April 2021|archive-date=21 April 2021|archive-url=https://web.archive.org/web/20210421011830/https://www.visitbritain.org/2019-snapshot|url-status=dead}}</ref> which was the third most visited city in the world (21.7 million), behind second-placed Bangkok and first-placed Hong Kong.<ref>{{cite web|url=https://go.euromonitor.com/white-paper-travel-2019-100-cities.html|title=Top 100 City Destinations: 2019 Edition|website=Euromonitor International|accessdate=22 April 2021}}</ref>

The UK's 10 most significant inbound tourism markets in 2019:<ref>{{cite web|url=https://www.visitbritain.org/markets-segments|title=Markets & Segments|website=Visit Britain|accessdate=22 April 2021}}</ref>

{| class="wikitable"
|-
!Rank
!Market
!Spend
!Visitors
|-
| align=right| 1
|European Union
|£9.33 billion
|22,580,591
|-
| align=right| 2
|United States
|£4.18 billion
|4,498,753
|-
| align=right| 3
|China
|£1.71 billion
|883,072
|-
| align=right| 4
|Australia
|£1.17 billion
|1,063,404 
|-
| align=right| 5
|India
|£752 million
|692,082
|-
| align=right| 6
|Canada
|£734 million
|874,060
|-
| align=right| 7
|Saudi Arabia
|£627 million
|220,780
|-
| align=right| 8
|Switzerland
|£569 million
|925,727

|-
| align=right| 9
|Norway
|£436 million
|647,460
|-
| align=right| 10
|Japan
|£369 million
|388,839

|}

===== Effects of the COVID-19 pandemic =====
The travel restrictions and lockdowns necessitated by the pandemic negatively affected the entire hospitality/tourism section in 2020 with a 76% reduction in "inbound tourism" to the UK that year according to [[VisitBritain]]. 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".<ref>{{cite web|url=https://www.visitbritain.org/2021-tourism-forecast|title=2021 tourism forecast |date=20 April 2015 |access-date=8 April 2021|quote=From mid-March to mid-July, COVID-19 triggered a near-total shutdown in international tourism ... there was an increase in visitor numbers from this low point, although they remained very low, and dipped again towards the end of the year.}}</ref>

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.<ref>{{cite web|url=https://www.visitbritain.org/2021-tourism-forecast|title=2021 tourism forecast |date=20 April 2015 |access-date=8 April 2021|quote=forecast assumes a slow recovery in early 2021 before a step change in the spring ... followed by a gradual recovery throughout the rest of the year and beyond.}}</ref>

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.<ref>{{cite web|url=https://www.visitbritain.org/covid-19-new-coronavirus-latest-information-and-advice-businesses-1 |title=COVID-19 (new coronavirus) - latest information and advice for businesses |date=4 November 2020 |access-date=8 April 2021|quote=whether non-essential international travel can resume on 17 May, or whether we will need to wait longer before lifting the outbound travel restriction.}}</ref> 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 [[Lineage B.1.1.7|B117 variant]] was of particular concern.<ref>{{cite web|url=https://www.dw.com/en/european-travel-restrictions-nonessential-travel-curbed/a-56350272 |title=European travel restrictions: Nonessential travel curbed |website=[[Deutsche Welle]] |access-date=8 April 2021|quote=Amid the coronavirus pandemic, many countries worldwide continue to restrict entry and most travel remains discouraged.}}</ref> 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".<ref>{{cite news|url=https://www.abc.net.au/news/2021-04-06/boris-johnson-uk-travel-reopening-coronavirus-covid-19/100050006 |title=Boris Johnson refuses to set hard date for Britain to reopen for international travel |newspaper=ABC News |date=5 April 2021 |access-date=8 April 2021|quote=Amid the coronavirus pandemic, many countries worldwide continue to restrict entry and most travel remains discouraged.|last1=Whalan |first1=Roscoe }}</ref> All travel restrictions ended on 18 March 2022.<ref>{{Cite news |date=18 March 2022 |title=Covid travel restrictions have ended in the UK |language=en-GB |work=BBC News |url=https://www.bbc.com/news/uk-60789979 |access-date=9 December 2023}}</ref>

====Transport, storage and communication====
{{Main|Telecommunications in the United Kingdom|Transport in the United Kingdom}}
[[File:An LNER Azuma train at Burnmouth, geograph 6350005 by Walter Baxter.jpg|thumb|The East Coast Main Line (ECML) is a 393-mile long (632 km) high-speed line between its southern terminus at [[London King's Cross station]] and [[Edinburgh Waverley]] via [[Peterborough railway station|Peterborough]], [[Doncaster railway station|Doncaster]], [[York railway station|York]], [[Darlington railway station|Darlington]], [[Durham railway station|Durham]] and [[Newcastle railway station|Newcastle]].]]
The transport and storage industry added a gross value of £59.2&nbsp;billion to the UK economy in 2011 and the telecommunication industry added a gross value of £25.1&nbsp;billion in the same year.<ref name="ons.gov.uk"/>

The UK has a total road network of {{convert|246700|mi|0}} with {{convert|31400|mi|0}} of major roads, including {{convert|2300|mi|0}} of motorway.<ref>{{cite web|url=https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/722478/road-lengths-in-great-britain-2017.pdf|title=Road Lengths in Great Britain 2017|date=5 July 2018|publisher=Department of Transport}}</ref> The railway infrastructure, in Great Britain, is owned by [[Network Rail]] which has {{convert|19291|mi|0}} of railway lines, of which {{convert|9866|mi}} is open for traffic.<ref>{{cite web|url=http://orr.gov.uk/__data/assets/pdf_file/0006/39417/rail-infrastructure-assets-environmental-2017-18.pdf|title=Rail infrastructure, assets and environmental 2017-18 Annual Statistical Release|date= 18 October 2018|publisher=[[Office of Rail and Road]]|website= [[gov.uk]]}}</ref> There are a further {{convert|206.5|mi}} of track in [[Northern Ireland]], owned and operated by [[Northern Ireland Railways]].<ref>{{cite web|url=https://www.translink.co.uk/Documents/Corporate/publications/network%20statement/Translink%20Network%20Statement%20March%202016.pdf|title=Northern Ireland Railways Network Statement 2019|date=30 March 2018|publisher=[[Northern Ireland Railways]]|website=www.translink.co.uk|access-date=12 January 2019|archive-url=https://web.archive.org/web/20170820121840/https://www.translink.co.uk/Documents/Corporate/publications/network%20statement/Translink%20Network%20Statement%20March%202016.pdf|archive-date=20 August 2017|url-status=dead}}</ref> 

The government is to spend £56&nbsp;billion on a new high-speed railway line, [[HS2]], with the first phase from London to [[Birmingham]] costing £27&nbsp;billion.<ref>{{cite news |url=https://www.bbc.co.uk/news/uk-46586603 |title=HS2: MPs had 'enormously wrong' cost estimate, says whistleblower |work=BBC News |date=17 December 2018}}</ref> [[Crossrail]] (later branded the [[Elizabeth line]]), which was completed and officially opened in 2022, is Europe's largest infrastructure project with a £15 billion projected cost.<ref>{{cite news |url=https://www.bbc.co.uk/news/uk-england-london-45970956 |work=BBC News |title= Crossrail: London 'to bear cost' of delayed line opening |date=24 October 2018}}</ref>

[[National Highways]] is the [[government-owned company]] responsible for trunk roads and motorways in England apart from the privately owned and operated [[M6 Toll]].<ref>{{cite web |url=http://www.m6toll.co.uk/faqs/default.asp?mainmenuid=6 |title=M6Toll Frequently asked questions |publisher=M6toll.co.uk |access-date=5 September 2012 |url-status=dead|archive-url=https://web.archive.org/web/20130113225031/http://www.m6toll.co.uk/faqs/default.asp?mainmenuid=6 |archive-date=13 January 2013 }}</ref> <ref>{{cite web|title=Tackling congestion on our roads |url=http://www.dft.gov.uk/pgr/roads/introtoroads/roadcongestion/ |archive-url=http://webarchive.nationalarchives.gov.uk/20100513053607/http://www.dft.gov.uk/pgr/roads/introtoroads/roadcongestion/ |url-status=dead|archive-date=13 May 2010 |publisher=Department for Transport }}</ref>

In the year from February 2017 to January 2018, UK airports handled a total of 284.8&nbsp;million passengers.<ref name=caastats>{{cite web|url=https://www.caa.co.uk/uploadedFiles/CAA/Content/Standard_Content/Data_and_analysis/Datasets/Airport_stats/Airport_data_2018_01/Table_01_Size_of_UK_Airports.pdf|title=Size of Reporting Airports February 2017 - January 2018|access-date=12 January 2019|publisher=civil Aviation Authority}}</ref> In that period the three largest airports were [[London Heathrow Airport]] (78.0&nbsp;million passengers), [[Gatwick Airport]] (45.6&nbsp;million passengers) and [[Manchester Airport]] (27.8&nbsp;million passengers).<ref name=caastats/> Heathrow, located {{convert|14 + 1/2|mi}} west of the capital,<ref>{{Google maps|url=https://www.google.com/maps/place/Heathrow+Airport/@51.4700223,-0.4564842,17z|title=London Heathrow Airport}}</ref> has the most international passenger traffic of any airport in the world.<ref name="bbc1">{{cite news|url=https://www.independent.co.uk/travel/news-and-advice/airports-worlds-busiest-international-passengers-dubai-heathrow-hong-kong-amsterdam-paris-a8194911.html|title=The 10 busiest airports in the world|newspaper=[[The Independent]]|access-date=12 January 2019| date=5 February 2018}}</ref> It is the hub for the UK flag carrier [[British Airways]] and [[Virgin Atlantic]].<ref>{{cite news |title=BMI being taken over by Lufthansa |url=http://news.bbc.co.uk/2/hi/7697261.stm |access-date=29 June 2011|work=BBC News |date=29 October 2008}}</ref> London's six commercial airports form the world's largest city airport system measured by passenger traffic with 171&nbsp;million passengers in 2017.<ref>{{cite web|url=https://www.anna.aero/2018/08/23/london-airports-handling-44-million-more-passengers-then-2010/|title=London's airports handle 44 million more passengers than in 2010; four of the top five airlines don't serve Heathrow|publisher= Airline Network News & Analysis|date= 23 August 2018}}</ref>

====Wholesale and retail trade====
This sector includes the motor trade, auto repairs, personal and household goods industries. The Blue Book 2013 reports that this sector added gross value of £151.8&nbsp;billion to the UK economy in 2011.<ref name="ons.gov.uk"/>

As of 2016, high-street retail spending accounted for about 33% of consumer spending and 20% of GDP. Because 75% of goods bought in the United Kingdom are made overseas, the sector only accounts for 5.7% of gross [[value added]] to the British economy.<ref>{{cite news|url=https://www.telegraph.co.uk/business/2016/06/16/why-britains-shopping-spree-will-come-at-a-cost |archive-url=https://ghostarchive.org/archive/20220111/https://www.telegraph.co.uk/business/2016/06/16/why-britains-shopping-spree-will-come-at-a-cost |archive-date=11 January 2022 |url-access=subscription |url-status=live|title=Why Britain's shopping spree will come at a cost|first=Allister|last=Heath|date=16 June 2016|access-date=18 June 2016|work=The Telegraph}}{{cbignore}}</ref> Online sales account for 22% of retail spending in the UK, third highest in the world after China and South Korea, and double that of the United States.<ref>{{cite news|url=https://www.ft.com/content/4e5e1022-8df3-11e9-a1c1-51bf8f989972 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/4e5e1022-8df3-11e9-a1c1-51bf8f989972 |archive-date=10 December 2022 |url-access=subscription|title=Death of the high street weighs on landlords round the world|first=Judith|last=Evans|website=Financial Times|date=22 June 2019|access-date=22 June 2019}}</ref>

The UK grocery market is dominated by four companies: [[Tesco]] (26.9% market share), [[Sainsbury's]] (14.8%), [[Asda]] (14.3%) and [[Morrisons]] (8.8%) in March 2023, these supermarkets are known as the "Big Four". However discount supermarkets such as [[Aldi]] and [[Lidl]] have grown in popularity, with Aldi's market share now worth 9.9%.<ref name="Kantar">{{cite web |title=Great Britain: Grocery Market Share (12 weeks ending) |url=https://www.kantarworldpanel.com/global/grocery-market-share/great-britain |publisher=Kantar Worldpanel |access-date=28 March 2023}}</ref><ref>{{cite news |title='Big four no more': where now for UK grocers as Aldi overtakes Morrisons? |url=https://www.theguardian.com/business/2022/sep/17/big-four-uk-grocers-aldi-morrisons-cost-of-living-crisis |work=The Guardian |date=17 September 2022}}</ref>

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&nbsp;billion. Outside of London, [[Manchester]] and [[Birmingham]] are also major retail destinations, the UK is also home to many large out of town shopping centres like [[Meadowhall Shopping Centre|Meadowhall]], away from the main high streets in town and city centres. Whilst the big international names dominate most towns and cities have streets or areas with many often quirky independent businesses.<ref>{{cite news|url=http://uk.reuters.com/article/uk-retail-major-cities-idUKLNE71G00420110217|title=London tops world cities spending league|access-date=14 May 2011|work=Reuters|date=17 February 2011|first=Mark|last=Potter}}</ref> The UK-based Tesco is the fourth-largest retailer in Europe measured by turnover (after [[Schwarz Gruppe|Swartz]], [[Aldi]], and [[Carrefour]] in 2019).<ref>{{Cite web|title=Europe: turnover of the top 15 retailers 2019|url=https://www.statista.com/statistics/642417/retail-turnover-top-retailers-europe/|access-date=4 December 2020|website=Statista|language=en}}</ref>

==Currency==
{{Main|Pound sterling}}
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. The highest daily volume, counted in trillions of [[US dollars]], is reached when [[New York City|New York]] enters the trade.

[[pound sterling|Sterling]] is the currency of the UK, with its main unit, the pound, represented by the symbol "[[£]]'. The Bank of England is the central bank, responsible for issuing currency. Banks in Scotland and Northern Ireland retain the right to issue their own notes, subject to retaining enough Bank of England notes in reserve to cover the issue. Sterling is also used as a [[reserve currency]] by other governments and institutions, and is the third-largest after the US dollar and the euro.<ref name="chavez2007">{{cite news| last=Chavez-Dreyfuss| first=Gertrude| url=http://in.reuters.com/article/asiaCompanyAndMarkets/idINN3141616420080331?sp=true| work=Reuters| title=Global reserves, dollar share up at end of 2007-IMF| date=1 April 2008| access-date=21 December 2009| archive-date=9 January 2009| archive-url=https://web.archive.org/web/20090109210433/http://in.reuters.com/article/asiaCompanyAndMarkets/idINN3141616420080331?sp=true| url-status=dead}}</ref>

The UK chose not to join the [[euro]] at the currency's launch. The government of former Prime Minister [[Tony Blair]] had pledged to hold a [[referendum]] to decide on membership should "[[five economic tests]]" be met. Until relatively recently there had been debate over whether or not the UK should abolish its currency and adopt the euro. In 2007 the Prime Minister, Gordon Brown, pledged to hold a public referendum based on certain tests he set as Chancellor of the Exchequer. When assessing the tests, Brown concluded that while the decision was close, the United Kingdom should not yet join the euro. He ruled out membership for the foreseeable future, saying that the decision not to join had been right for the UK and for Europe.<ref>{{cite news|date=24 July 2007|url=http://www.timesonline.co.uk/tol/news/politics/article2127640.ece|title=Puritanism comes too naturally for 'Huck' Brown|newspaper=Times Online|access-date=24 July 2007| location=London|first=Ann|last=Treneman}}</ref> In particular, he cited fluctuations in house prices as a barrier to immediate entry. Public [[opinion poll]]s have shown that a majority of Britons have been opposed to joining the single currency for some considerable time, and this position has hardened further in the last few years.<ref>{{cite web |url=http://www.mori.com/polls/trends/eurotrend.shtml |title=Joining the Euro, all companies' polls |publisher=Mori.com |access-date=5 September 2012 |url-status=dead|archive-url=https://web.archive.org/web/20080724021105/http://www.mori.com/polls/trends/eurotrend.shtml |archive-date=24 July 2008 }}</ref> In 2005, more than half (55%) of the UK were against adopting the currency, while 30% were in favour.<ref>{{cite web|date=28 February 2005|url=http://www.ipsos-mori.com/researchpublications/researcharchive/poll.aspx?oItemId=429|title=EMU Entry and EU Constitution |publisher=MORI|access-date=17 May 2006}}</ref> 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 US dollars and euros per pound; and inversely: £ per US$ and €. ([[XEU|Synthetic Euro XEU]] before 1999). These averages conceal wide intra-year spreads. The [[coefficient of variation]] gives an indication of this. It also shows the extent to which the pound tracks the euro or the dollar. Note the effect of [[Black Wednesday]] in late 1992 by comparing the averages for 1992 and for 1993.
{{col-begin}}
{{col-2}}
{| class="wikitable"
|-
!Year&nbsp;||£/US$&nbsp;||US$/£&nbsp; ||[[Coefficient of variation|C.var]]||&nbsp;&nbsp; ||£/XEU&nbsp;||XEU/£||C.var
|-
|1990 || £0.5633 || $1.775 || || || £0.7161 || ₠1.397 ||
|-
|1991 || £0.5675 || $1.762 || || || £0.7022 || ₠1.424 ||
|-
|1992 || £0.5699 || $1.755 || || || £0.7365 || ₠1.358 ||
|-
|1993 || £0.6663 || $1.501 || || || £0.7795 || ₠1.283 ||
|-
|1994 || £0.6536 || $1.53  || || || £0.7742 || ₠1.292 ||
|-
|1995 || £0.6338 || $1.578 || || || £0.82   || ₠1.22  ||
|-
|1996 || £0.6411 || $1.56  || || || £0.8029 || ₠1.245 ||
|-
|1997 || £0.6106 || $1.638 || || || £0.6909 || ₠1.447 ||
|-
|1998 || £0.6037 || $1.656 || || || £0.6779 || ₠1.475 ||
|-
|1999 || £0.6185 || $1.617 || || || £0.6595 || €1.516 ||
|-
|2000 || £0.6609 || $1.513 || || || £0.6099 || €1.64  ||
|-
|2001 || £0.6943 || $1.44  || || || £0.6223 || €1.607 ||
|-
|2002 || £0.6664 || $1.501 || || || £0.6289 || €1.59  ||
|-
|2003 || £0.6123 || $1.633 || || || £0.6924 || €1.444 ||
|-
|2004 || £0.5461 || $1.832 || 2.26% || || £0.6787 || €1.474 || 1.92%
|}
{{col-2}}
{|class="wikitable"
|-
!Year&nbsp;||£/US$&nbsp;||US$/£&nbsp; ||C.var||&nbsp;&nbsp; ||£/€&nbsp;||€/£||C.var
|-
|2005 || £0.55   || $1.82  || 3.47% || || £0.6842 || €1.462 || 1.27%
|-
|2006 || £0.5435 || $1.842 || 3.79% || || £0.6821 || €1.466 || 1.11%
|-
|2007 || £0.4999 || $2.001 || 1.97% || || £0.6848 || €1.461 || 2.4%
|-
|2008 || £0.5499 || $1.835 ||   || || £0.7964 || €1.226 ||
|-
|2009 || £0.641  || $1.566 ||  || || £0.8914 || €1.123 ||
|-
|2010 || £0.6474 || $1.546 || 1.27% || || £0.8586 || €1.166 || 3.83%
|-
|2011 || £0.6231 || $1.605 || 3.81% || || £0.8684 || €1.151 || 1.286%
|-
|2012 || £0.6310 || $1.585 || 2.74% || || £0.8112 || €1.233 || 0.712%
|-
|2013 || £0.6650<ref name="IRS1">{{cite web |url=https://www.irs.gov/individuals/international-taxpayers/yearly-average-currency-exchange-rates |title=Yearly Average Currency Exchange Rates |publisher=IRS}}</ref> || $1.503 || 5.17% || || £0.8496<ref name="OANav">{{cite web |url=https://www.oanda.com/currency/average |title=Average Exchange Rate |publisher=OANDA}}</ref> || €1.177 || 4.54%
|-
|2014 || £0.6320<ref name=IRS1/> || $1.582 || 5.25% || || £0.8060<ref name=OANav/> || €1.240 || 5.35%
|-
|2015 || £0.6810<ref name=IRS1/> || $1.468 || 7.20% || || £0.7262<ref name=OANav/> || €1.377 || 11.04%
|-
|2016 || £0.770<ref name=IRS1/> || $1.299 ||  || || £0.8193<ref name="ExRateUK">{{cite web |url=https://www.exchangerates.org.uk/GBP-EUR-spot-exchange-rates-history-2016.html |title=Exchange Rate History |publisher=EXRATES}}</ref> || €1.2242 || 
|-
|2017 || £0.808<ref name=IRS1/> || $1.238 ||  || || £0.8766<ref name=ExRateUK/>|| €1.1414 || 
|-
|2018 || £0.750<ref name=IRS1/> || $1.333 || || || £0.885<ref name=ExRateUK/> || €1.1301 || 
|-
|2019 || £0.748<ref name=IRS1/> || $1.337 ||  || || £0.8773<ref name=ExRateUK/> || €1.1405 || 
|-
|}
{{col-end}}

: For consistency and comparison purposes, coefficient of variation is measured on both the "per £" ratios, although it is conventional to show the forex rates as dollars per £ and £ per euro.

==Economy by country==
{{main|Economy of England|Economy of Scotland|Economy of Wales|Economy of Northern Ireland}}

The strength of the UK economy varies from country to country. Excluding the effects of North Sea oil and gas (which is classified in official statistics as extra-regio), England has the highest [[gross value added]] (GVA) and Wales the lowest of the UK's countries.

{| class="wikitable"
|-
!Rank
!Country
!GVA per head, 2020<ref name="GVA_ONS20">{{cite web |title=Regional economic activity by gross domestic product, UK: 1998 to 2020|url=https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/regionaleconomicactivitybygrossdomesticproductuk/1998to2020/pdf |website=www.ons.gov.uk|date=30 May 2022}}</ref>
|-
| align=right| 1
|[[England]]
|£32,866 (${{To USD|32866|GBR|year=2020|round=yes}})
|-
| align=right| 2
|[[Scotland]]
|£29,629 (${{To USD|29629|GBR|year=2020|round=yes}})
|-
| align=right| 3
|[[Northern Ireland]]
|£25,575 (${{To USD|25575|GBR|year=2020|round=yes}})
|-
| align=right| 4
|[[Wales]]
|£23,882 (${{To USD|23882|GBR|year=2020|round=yes}})
|}

==Economy by English region==
{{see also|List of ceremonial counties in England by gross value added}}

Within England, [[Gross value added|GVA]] per capita is highest in [[London]]. The following table shows the GVA per capita of the nine [[statistical regions of England]].

{| class="wikitable"
|-
!Rank
!Region
!GVA per head, 2020<ref name="GVA_ONS20"/>
|-
| align=right| 1
|[[London]]
|£55,974 (${{To USD|55974|GBR|year=2020|round=yes}})
|-
| align=right| 2
|[[South East England]]
|£34,516 (${{To USD|34516|GBR|year=2020|round=yes}})
|-
| align=right| 3
|[[East of England]]
|£29,176 (${{To USD|29176|GBR|year=2020|round=yes}})
|-
| align=right| 4
|[[North West England]]
|£28,257 (${{To USD|28257|GBR|year=2020|round=yes}})
|-
| align=right| 5
|[[South West England]]
|£28,012 (${{To USD|28012|GBR|year=2020|round=yes}})
|-
| align=right| 6
|[[West Midlands (region)|West Midlands]]
|£26,281 (${{To USD|26281|GBR|year=2020|round=yes}})
|-
| align=right| 7
|[[East Midlands]]
|£25,956 (${{To USD|25956|GBR|year=2020|round=yes}})
|-
| align=right| 8
|[[Yorkshire and the Humber]]
|£25,696 (${{To USD|25696|GBR|year=2020|round=yes}})
|-
| align=right| 9
|[[North East England]]
|£23,109 (${{To USD|23109|GBR|year=2020|round=yes}})
|}

==Trade==
{{see also|List of exports of the United Kingdom}}[[File:UK value of exports at constant prices since 1995.png|thumb|Value of UK exports at constant prices, 1995–2016]]The trade deficit (goods and services) narrowed £0.2 billion to £7.9 billion in the three months to November 2018 as both goods and services exports each increased £0.1 billion more than their respective imports.<ref>{{cite web |series=UK trade - Office for National Statistics |url=https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/bulletins/uktrade/november2018 |title= November 2018 release |website=www.ons.gov.uk |access-date=11 January 2019}}</ref>

Excluding erratic commodities (mainly aircraft) the total trade deficit widened £1.2 billion to £9.5 billion in the three months to November 2018.

Large increases in export prices of oil and aircraft drove the narrowing of the total trade deficit; removing the effect of inflation, the total trade deficit widened £0.3 billion to £6.5 billion in the three months to November 2018.

The trade in goods deficit widened £0.8 billion with EU countries and narrowed £0.9 billion with non-EU countries in the three months to November 2018, due mainly to increases in imports from EU countries and exports to non-EU countries.

The total trade deficit widened £4.1 billion in the 12 months to November 2018 due mainly to a £4.4 billion narrowing in the trade in services surplus.

After the withdrawal of the United Kingdom from the European Union, the negotiation of a trade deal between the UK and the European Union including her 27 member states might have the same status than third countries for statistics related to imports and exports with the UK:
* According to OEC World 2017 data, the EU-27-2020 could become/stay one of the notable partners of the UK, with exports from the UK reaching near $200B, close from the United States ($45B, and China $21B).<ref>{{Cite web|url=https://oec.world/en/visualize/tree_map/hs92/export/gbr/show/all/2017/|title = Where does export to? (2017) &#124; OEC}}</ref>
* According to OEC World 2017 data, the EU-27-2020 could become/stay one of the notable partners of the UK, with imports to the UK reaching near $330B, close from the United States ($46B, and China $58B).<ref>{{Cite web|url=https://oec.world/en/visualize/tree_map/hs92/import/gbr/show/all/2017/|title = Where does import from? (2017) &#124; OEC}}</ref>
UK economy received £1 billion to boost through innovative trade digitalisation act in July 2023.<ref>{{cite web|date=20 July 2023|title=UK economy to receive £1 billion boost through innovative trade digitalisation act|url=https://www.gov.uk/government/news/uk-economy-to-receive-1-billion-boost-through-innovative-trade-digitalisation-act}}</ref> 

'''Trade deals being negotiated'''
* [[Canada–United Kingdom Free Trade Agreement]]
* [[India–United Kingdom Free Trade Agreement]]
* [[Gulf Cooperation Council–United Kingdom Free Trade Agreement]]
* [[United Kingdom–United States Free Trade Agreement]]
* [[Comprehensive and Progressive Agreement for Trans-Pacific Partnership]]
* * [[Accession of the United Kingdom to CPTPP]]

''' Other Trade Deals '''
* [[Free trade agreements of the United Kingdom]]

==Investment==
In 2013 the UK was the leading country in Europe for inward [[foreign direct investment]] (FDI) with $26.51bn. This gave it a 19.31% market share in Europe. In contrast, the UK was second in Europe for outward FDI, with $42.59bn, giving a 17.24% share of the European market.<ref>{{cite web|url=http://www.fdiintelligence.com/Landing-Pages/fDi-report-2014/fDi-Report-2014-Europe#Main |title=The fDi Report 2014 – Europe|work=[[FDi Magazine]]|date=June 2014 |access-date=17 July 2014}}</ref>

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. Deeper analysis of outward investment revealed that much of what was thought to be foreign [[debt securities]] owned by British companies were actually loans to British citizens. 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 UK had been relying on a surplus of inward investment to make up for its long-term [[Current account (balance of payments)|current account]] deficit.<ref>{{cite news|url=https://www.telegraph.co.uk/business/2017/10/15/britains-missing-billions-revised-figures-reveal-uk-490bn-poorer/ |archive-url=https://ghostarchive.org/archive/20220111/https://www.telegraph.co.uk/business/2017/10/15/britains-missing-billions-revised-figures-reveal-uk-490bn-poorer/ |archive-date=11 January 2022 |url-access=subscription |url-status=live|title=Britain's missing billions: Revised figures reveal UK is £490bn poorer than previously thought|first=Ambrose|last=Evans-Pritchard|date=15 October 2017|access-date=15 October 2017|work=The Telegraph}}{{cbignore}}</ref> In April 2021, [[Gerry Grimstone, Baron Grimstone of Boscobel|Lord Grimstone]] established the [[UK Investment Council]] to enhance UK inward investment and inform the trade policy of the UK by providing a forum for global investors to offer high-level advice to the government.<ref>{{Cite news |last=Inman |first=Phillip |date=2023-02-09 |title=Sunak and Hunt to host UK industry leaders to drum up investment |url=https://www.theguardian.com/uk-news/2023/feb/09/sunak-and-hunt-to-host-200-uk-industry-leaders-to-drum-up-investment |access-date=2024-06-22 |work=The Guardian |language=en-GB |issn=0261-3077}}</ref><ref>{{Cite web |title=UK Investment Council |url=https://www.gov.uk/government/groups/uk-investment-council |access-date=2024-06-22 |website=GOV.UK |language=en}}</ref>

According to the [[Office for National Statistics]], the UK is the biggest investor in America,<ref name=":0">{{Cite web |title=Exploring foreign investment: where does the UK invest, and who invests in the UK? - Office for National Statistics |url=https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/articles/exploringforeigninvestmentwheredoestheukinvestandwhoinvestsintheuk/2018-11-01 |access-date=21 August 2023 |website=www.ons.gov.uk}}</ref> and the second biggest in China.<ref name=":0" />

== Mergers and acquisitions ==
{{See also|List of largest companies in the United Kingdom}}
Since 1985 103,430 deals with UK participation have been announced. There have been three major waves of increased M&A activity (2000, 2007 and 2017; see graph "M&A in the UK"). 1999 however, was the year with the highest cumulated value of deals (£490 bil, which is about 50% more than the current peak of 2017). 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.<ref>{{Cite news|url=https://imaa-institute.org/m-and-a-uk-united-kingdom/|title=M&A UK - Mergers and Acquisitions United Kingdom, England|work=IMAA-Institute|access-date=22 February 2018|language=en-US}}</ref> The Vodafone - Mannesmann deal is still the biggest deal in global history.
{| class="wikitable"
!Rank
!Date
!Acquirer
!Acquirer nation
!Target
!Target nation
!Value<br />(£&nbsp;billions)
|-
|1
|14 November 1999
|Vodafone AirTouch PLC
|United Kingdom
|Mannesmann AG
|Germany
|126.95
|-
|2
|16 September 2015
|Anheuser-Busch Inbev SA/NV
|Belgium
|SABMiller PLC
|United Kingdom
|77.24
|-
|3
|4 August 2015
|Royal Dutch Shell PLC
|Netherlands
|BG Group PLC
|United Kingdom
|46.70
|-
|4
|17 January 2000
|Glaxo Wellcome PLC
|United Kingdom
|SmithKline Beecham PLC
|United Kingdom
|46.48
|-
|5
|28 October 2004
|Royal Dutch Petroleum Co
|Netherlands
|Shell Transport & Trading Co
|United Kingdom
|40.75
|-
|6
|21 October 2016
|British American Tobacco PLC
|United Kingdom
|Reynolds American Inc
|United States
|40.10
|-
|7
|15 January 1999
|Vodafone Group PLC
|United Kingdom
|AirTouch Communications Inc
|United States
|36.35
|-
|8
|30 May 2000
|France Telecom SA
|France
|Orange PLC
|United Kingdom
|31.14
|-
|9
|8 November 1998
|British Petroleum Co PLC
|United Kingdom
|Amoco Corp
|United States
|29.51
|-
|10
|31 October 2016
|GE Oil & Gas
|United Kingdom
|Baker Hughes Inc
|United States
|26.63
|-
|11
|26 February 2009
|HM Treasury
|United Kingdom
|Royal Bank of Scotland Group
|United Kingdom
|25.50
|}

* In most cases both the acquiring and target companies have/had shareholders spread throughout the world, not only in the stated countries.

==European Union membership==
The proportion of the country's exports going to the EU has fallen from 54 per cent to 47 per cent over the past decade. The total value of exports however, has increased in the same period from £130 billion (€160 billion) to £240 billion (€275 billion).<ref>{{cite web |url=http://euobserver.com/news/123132 |title=New UK reports back EU powers, enrage eurosceptics |date=13 February 2014 |access-date=16 February 2014 |publisher=EUobserver}}</ref><ref>{{cite web |title=Balance of EU competences review: research and development |date=13 February 2014 |url=https://www.gov.uk/government/consultations/review-of-uk-and-eu-balance-of-competences-call-for-evidence-on-research-and-development| publisher=UK Government |access-date=16 February 2014}}</ref>

In June 2016 the UK voted to leave the EU in a national referendum on its membership of the EU. 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,<ref>{{cite news |title=Brexit: All you need to know about the UK leaving the EU |work=BBC News |date=21 May 2015 |url=https://www.bbc.co.uk/news/uk-politics-32810887| publisher=British Broadcasting Corporation| access-date=6 May 2019 }}</ref> and then extended again until Friday 31 January 2020 with the ability to exit earlier.<ref>{{Cite news|url=https://www.bbc.com/news/uk-politics-50205603|title=PM agrees to Brexit extension - but urges election|date=28 October 2019|access-date=28 October 2019|language=en-GB}}</ref> 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.<ref>[https://www.theguardian.com/business/2019/nov/11/uk-avoids-recession-brexit-gdp-figures-economy UK avoids recession but Brexit uncertainty damages growth] ''[[The Guardian]]''</ref>

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 . 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.<ref>{{cite web|url=https://www.gov.uk/government/news/government-acts-to-protect-jobs-in-every-part-of-the-uk|title=Government acts to protect jobs in every part of the UK|access-date=15 July 2020|website=Government of UK}}</ref>

==Poverty==
{{Main|Poverty in the United Kingdom}}
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. According to the OECD, the UK is in the lower half of developed country rankings for poverty rates, doing better than France, Italy, Spain, and the US but less well than [[Austria]], [[Hungary]], [[Slovakia]] and the [[Nordic countries]].<ref>{{cite web | url=http://www.oecd.org/document/4/0,3343,en_2649_33933_41460917_1_1_1_1,00.html| title=Growing unequal? | work=OECD website |year=2008 | access-date=20 September 2010}}</ref> [[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).<ref name=Eurostat>
{{cite web|title=People at risk of poverty after social transfers | publisher=Eurostat| url=http://ec.europa.eu/eurostat/tgm/refreshTableAction.do;jsessionid=9dOzCK6faudvGXEUauSxnZee7WnnEncGCh9i1A5wNyHpOODu4VUk!-1393835901?tab=table&plugin=1&pcode=t2020_52&language=en}}
</ref>
Poverty is countered in United Kingdom with the [[welfare state]].

The poverty line in the UK is commonly defined as being 60% of the median household income. 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&nbsp;million people, or 22% of the population, lived below this line. This is a higher level of relative poverty than all but four EU members.<ref>{{cite web|title= United Kingdom: Numbers in low income|url= http://www.poverty.org.uk/01/index.shtml|publisher= The Poverty Site|access-date= 25 September 2009|url-status=dead|archive-url= https://web.archive.org/web/20100713230703/http://www.poverty.org.uk/01/index.shtml|archive-date= 13 July 2010|df= dmy-all}}</ref> In the same year, 4.0&nbsp;million children, 31% of the total, lived in households below the poverty line, after housing costs were taken into account. This is a decrease of 400,000 children since 1998–1999.<ref>{{cite web|title= United Kingdom: Children in low income households|url= http://www.poverty.org.uk/16/index.shtml|publisher= The Poverty Site|access-date= 25 September 2009|archive-url= https://web.archive.org/web/20090622201606/http://www.poverty.org.uk/16/index.shtml|archive-date= 22 June 2009|url-status=dead|df= dmy-all}}</ref>

== Economic impacts of climate change ==
{{excerpt|Climate change in the United Kingdom|Economic impacts|subsections=yes}}

== Data ==
The following table shows the main economic indicators in 1980–2021 (with IMF staff estimates in 2022–2027). Inflation below 5% is in green.<ref>{{cite web | url=https://www.imf.org/en/Publications/WEO/weo-database/2022/October/weo-report?c=112,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP,&sy=1980&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 | title=Report for Selected Countries and Subjects }}</ref>
{| class="wikitable" style="text-align:center;"
!Year
!GDP
<small>(in Bil. US$PPP)</small>
!GDP per capita
<small>(in US$ PPP)</small>
!GDP
<small>(in Bil. US$ nominal)</small>
!GDP per capita
<small>(in US$ nominal)</small>
!GDP growth
<small>(real)</small>
!In{{shy}}flation rate
<small>(in %)</small>
!Unem{{shy}}ploy{{shy}}ment
<small>(in %)</small>
!Govern{{shy}}ment debt
<small>(in % of GDP)</small>
|-
|1980
|511.8
|9,085.1
|603.6
|10,715.4
|{{Decrease}}-2.1%
|{{IncreaseNegative}}16.8%
|7.1%
|42.6%
|-
|1981
|{{Increase}}556.3
|{{Increase}}9,870.7
|{{Decrease}}587.3
|{{Decrease}}10,420.4
|{{Decrease}}-0.7%
|{{IncreaseNegative}}12.2%
|{{IncreaseNegative}}9.7%
|{{IncreaseNegative}}44.8%
|-
|1982
|{{Increase}}602.3
|{{Increase}}10,699.9
|{{Decrease}}558.3
|{{Decrease}}9,918.9
|{{Increase}}2.0%
|{{IncreaseNegative}}8.5%
|{{IncreaseNegative}}10.7%
|{{DecreasePositive}}43.1%
|-
|1983
|{{Increase}}652.2
|{{Increase}}11,580.6
|{{Decrease}}532.1
|{{Decrease}}9,448.7
|{{Increase}}4.2%
|{{IncreaseNegative}}5.2%
|{{IncreaseNegative}}11.5%
|{{DecreasePositive}}41.9%
|-
|1984
|{{Increase}}690.9
|{{Increase}}12,247.2
|{{Decrease}}504.2
|{{Decrease}}8,938.7
|{{Increase}}2.2%
|{{Increase}}4.4%
|{{IncreaseNegative}}11.8%
|{{IncreaseNegative}}42.3%
|-
|1985
|{{Increase}}742.1
|{{Increase}}13,121.9
|{{Increase}}536.6
|{{Increase}}9,488.1
|{{Increase}}4.1%
|{{IncreaseNegative}}5.2%
|{{DecreasePositive}}11.4%
|{{DecreasePositive}}41.3%
|-
|1986
|{{Increase}}780.9
|{{Increase}}13,776.7
|{{Increase}}654.7
|{{Increase}}11,549.7
|{{Increase}}3.2%
|{{Increase}}3.6%
|{{DecreasePositive}}11.3%
|{{Steady}}41.3%
|-
|1987
|{{Increase}}843.4
|{{Increase}}14,847.8
|{{Increase}}813.1
|{{Increase}}14,315.0
|{{Increase}}5.4%
|{{Increase}}4.1%
|{{DecreasePositive}}10.4%
|{{DecreasePositive}}39.3%
|-
|1988
|{{Increase}}922.1
|{{Increase}}16,200.4
|{{Increase}}990.2
|{{Increase}}17,398.2
|{{Increase}}5.6%
|{{Increase}}4.6%
|{{DecreasePositive}}8.6%
|{{DecreasePositive}}37.1%
|-
|1989
|{{Increase}}981.6
|{{Increase}}17,198.6
|{{Increase}}1,008.4
|{{Increase}}17,667.9
|{{Increase}}2.4%
|{{IncreaseNegative}}5.2%
|{{DecreasePositive}}7.2%
|{{DecreasePositive}}32.5%
|-
|1990
|{{Increase}}1,024.8
|{{Increase}}17,904.8
|{{Increase}}1,195.4
|{{Increase}}20,884.2
|{{Increase}}0.6%
|{{IncreaseNegative}}7.0%
|{{DecreasePositive}}7.1%
|{{DecreasePositive}}28.5%
|-
|1991
|{{Increase}}1,046.9
|{{Increase}}18,226.8
|{{Increase}}1,250.3
|{{Increase}}21,767.1
|{{Decrease}}-1.2%
|{{IncreaseNegative}}7.5%
|{{IncreaseNegative}}8.9%
|{{DecreasePositive}}28.4%
|-
|1992
|{{Increase}}1,074.1
|{{Increase}}18,653.1
|{{Increase}}1,292.1
|{{Increase}}22,438.0
|{{Increase}}0.3%
|{{Increase}}4.2%
|{{IncreaseNegative}}10.0%
|{{IncreaseNegative}}33.2%
|-
|1993
|{{Increase}}1,126.0
|{{Increase}}19,509.9
|{{Decrease}}1,157.5
|{{Decrease}}20,055.8
|{{Increase}}2.4%
|{{Increase}}2.5%
|{{IncreaseNegative}}10.4%
|{{IncreaseNegative}}37.9%
|-
|1994
|{{Increase}}1,193.4
|{{Increase}}20,624.6
|{{Increase}}1,244.0
|{{Increase}}21,499.6
|{{Increase}}3.8%
|{{Increase}}2.0%
|{{DecreasePositive}}9.5%
|{{IncreaseNegative}}40.6%
|-
|1995
|{{Increase}}1,248.2
|{{Increase}}21,511.1
|{{Increase}}1,346.7
|{{Increase}}23,208.7
|{{Increase}}2.4%
|{{Increase}}2.6%
|{{DecreasePositive}}8.6%
|{{IncreaseNegative}}43.6%
|-
|1996
|{{Increase}}1,301.9
|{{Increase}}22,383.3
|{{Increase}}1,423.0
|{{Increase}}24,464.8
|{{Increase}}2.4%
|{{Increase}}2.4%
|{{DecreasePositive}}8.1%
|{{IncreaseNegative}}43.7%
|-
|1997
|{{Increase}}1,389.4
|{{Increase}}23,825.5
|{{Increase}}1,559.9
|{{Increase}}26,749.9
|{{Increase}}4.9%
|{{Increase}}1.8%
|{{DecreasePositive}}7.0%
|{{DecreasePositive}}43.2%
|-
|1998
|{{Increase}}1,449.3
|{{Increase}}24,785.2
|{{Increase}}1,653.5
|{{Increase}}28,277.9
|{{Increase}}3.2%
|{{Increase}}1.6%
|{{DecreasePositive}}6.3%
|{{DecreasePositive}}40.9%
|-
|1999
|{{Increase}}1,513.7
|{{Increase}}25,793.8
|{{Increase}}1,686.2
|{{Increase}}28,733.2
|{{Increase}}3.0%
|{{Increase}}1.3%
|{{DecreasePositive}}6.0%
|{{DecreasePositive}}39.3%
|-
|2000
|{{Increase}}1,604.8
|{{Increase}}27,253.1
|{{Decrease}}1,665.3
|{{Decrease}}28,279.7
|{{Increase}}3.7%
|{{Increase}}0.8%
|{{DecreasePositive}}5.5%
|{{DecreasePositive}}36.6%
|-
|2001
|{{Increase}}1,675.0
|{{Increase}}28,335.4
|{{Decrease}}1,644.3
|{{Decrease}}27,816.7
|{{Increase}}2.1%
|{{Increase}}1.2%
|{{DecreasePositive}}5.1%
|{{DecreasePositive}}33.9%
|-
|2002
|{{Increase}}1,737.2
|{{Increase}}29,262.8
|{{Increase}}1,786.9
|{{Increase}}30,099.6
|{{Increase}}2.1%
|{{Increase}}1.3%
|{{IncreaseNegative}}5.2%
|{{IncreaseNegative}}34.1%
|-
|2003
|{{Increase}}1,825.2
|{{Increase}}30,604.8
|{{Increase}}2,059.0
|{{Increase}}34,525.0
|{{Increase}}3.0%
|{{Increase}}1.4%
|{{DecreasePositive}}5.0%
|{{IncreaseNegative}}35.3%
|-
|2004
|{{Increase}}1,918.3
|{{Increase}}31,998.7
|{{Increase}}2,422.9
|{{Increase}}40,415.5
|{{Increase}}2.4%
|{{Increase}}1.3%
|{{DecreasePositive}}4.8%
|{{IncreaseNegative}}38.2%
|-
|2005
|{{Increase}}2,029.8
|{{Increase}}33,598.5
|{{Increase}}2,547.7
|{{Increase}}42,171.2
|{{Increase}}2.6%
|{{Increase}}2.1%
|{{Steady}}4.8%
|{{IncreaseNegative}}39.4%
|-
|2006
|{{Increase}}2,146.5
|{{Increase}}35,288.4
|{{Increase}}2,720.9
|{{Increase}}44,731.6
|{{Increase}}2.6%
|{{Increase}}2.3%
|{{IncreaseNegative}}5.4%
|{{IncreaseNegative}}40.4%
|-
|2007
|{{Increase}}2,254.5
|{{Increase}}36,767.2
|{{Increase}}3,107.4
|{{Increase}}50,675.5
|{{Increase}}2.3%
|{{Increase}}2.3%
|{{Steady}}5.4%
|{{IncreaseNegative}}41.4%
|-
|2008
|{{Increase}}2,292.3
|{{Increase}}37,077.1
|{{Decrease}}2,970.0
|{{Decrease}}48,039.0
|{{Decrease}}-0.2%
|{{Increase}}3.6%
|{{IncreaseNegative}}5.7%
|{{IncreaseNegative}}49.0%
|-
|2009
|{{Decrease}}2,209.0
|{{Decrease}}35,479.0
|{{Decrease}}2,434.5
|{{Decrease}}39,101.2
|{{Decrease}}-4.2%
|{{Increase}}2.2%
|{{IncreaseNegative}}7.6%
|{{IncreaseNegative}}62.8%
|-
|2010
|{{Increase}}2,283.2
|{{Increase}}36,379.2
|{{Increase}}2,493.6
|{{Increase}}39,731.6
|{{Increase}}2.1%
|{{Increase}}3.3%
|{{IncreaseNegative}}7.9%
|{{IncreaseNegative}}74.0%
|-
|2011
|{{Increase}}2,364.6
|{{Increase}}37,363.8
|{{Increase}}2,675.8
|{{Increase}}42,281.9
|{{Increase}}1.5%
|{{Increase}}4.5%
|{{IncreaseNegative}}8.1%
|{{IncreaseNegative}}79.5%
|-
|2012
|{{Increase}}2,453.4
|{{Increase}}38,511.1
|{{Increase}}2,719.6
|{{Increase}}42,691.2
|{{Increase}}1.5%
|{{Increase}}2.8%
|{{DecreasePositive}}8.0%
|{{IncreaseNegative}}82.7%
|-
|2013
|{{Increase}}2,579.2
|{{Increase}}40,232.7
|{{Increase}}2,805.1
|{{Increase}}43,757.4
|{{Increase}}1.9%
|{{Increase}}2.6%
|{{DecreasePositive}}7.6%
|{{IncreaseNegative}}83.6%
|-
|2014
|{{Increase}}2,686.2
|{{Increase}}41,584.0
|{{Increase}}3,088.8
|{{Increase}}47,816.0
|{{Increase}}3.0%
|{{Increase}}1.5%
|{{DecreasePositive}}6.2%
|{{IncreaseNegative}}85.5%
|-
|2015
|{{Increase}}2,795.1
|{{Increase}}42,928.5
|{{Decrease}}2,957.2
|{{Decrease}}45,418.9
|{{Increase}}2.6%
|{{Increase}}0.0%
|{{DecreasePositive}}5.4%
|{{IncreaseNegative}}86.0%
|-
|2016
|{{Increase}}2,928.3
|{{Increase}}44,606.1
|{{Decrease}}2,733.0
|{{Decrease}}41,630.5
|{{Increase}}2.3%
|{{Increase}}0.7%
|{{DecreasePositive}}4.9%
|{{DecreasePositive}}85.8%
|-
|2017
|{{Increase}}3,074.4
|{{Increase}}46,553.5
|{{Decrease}}2,701.3
|{{Decrease}}40,903.5
|{{Increase}}2.1%
|{{Increase}}2.7%
|{{DecreasePositive}}4.4%
|{{DecreasePositive}}85.1%
|-
|2018
|{{Increase}}3,199.8
|{{Increase}}48,163.7
|{{Increase}}2,904.5
|{{Increase}}43,719.0
|{{Increase}}1.7%
|{{Increase}}2.5%
|{{DecreasePositive}}4.1%
|{{DecreasePositive}}84.5%
|-
|2019
|{{Increase}}3,311.5
|{{Increase}}49,575.6
|{{Decrease}}2,880.4
|{{Decrease}}43,121.1
|{{Increase}}1.7%
|{{Increase}}1.8%
|{{DecreasePositive}}3.8%
|{{DecreasePositive}}83.9%
|-
|2020
|{{Decrease}}3,040.7
|{{Decrease}}45,329.1
|{{Decrease}}2,758.9
|{{Decrease}}41,127.4
|{{Decrease}}-9.3%
|{{Increase}}0.9%
|{{IncreaseNegative}}4.6%
|{{IncreaseNegative}}102.6%
|-
|2021
|{{Increase}}3,402.7
|{{Increase}}50,522.7
|{{Increase}}3,187.6
|{{Increase}}47,328.8
|{{Increase}}7.4%
|{{Increase}}2.6%
|{{DecreasePositive}}4.5%
|{{DecreasePositive}}95.3%
|-
|2022
|{{Increase}}3,776.0
|{{Increase}}55,862.1
|{{Increase}}3,198.5
|{{Decrease}}47,317.6
|{{Increase}}3.6%
|{{IncreaseNegative}}9.1%
|{{DecreasePositive}}3.8%
|{{DecreasePositive}}87.0%
|-
|2023
|{{Increase}}3,922.9
|{{Increase}}57,821.9
|{{Increase}}3,479.5
|{{Increase}}51,286.1
|{{Increase}}0.3%
|{{IncreaseNegative}}9.0%
|{{IncreaseNegative}}4.8%
|{{DecreasePositive}}79.9%
|-
|2024
|{{Increase}}4,027.7
|{{Increase}}59,160.0
|{{Increase}}3,757.4
|{{Increase}}55,189.5
|{{Increase}}0.6%
|{{Increase}}3.7%
|{{IncreaseNegative}}5.0%
|{{DecreasePositive}}76.7%
|-
|2025
|{{Increase}}4,198.8
|{{Increase}}61,471.6
|{{Increase}}3,969.9
|{{Increase}}58,120.1
|{{Increase}}2.3%
|{{Increase}}1.8%
|{{DecreasePositive}}4.3%
|{{DecreasePositive}}73.7%
|-
|2026
|{{Increase}}4,373.1
|{{Increase}}63,829.0
|{{Increase}}4,217.7
|{{Increase}}61,562.0
|{{Increase}}2.2%
|{{Increase}}2.0%
|{{DecreasePositive}}4.2%
|{{DecreasePositive}}70.6%
|-
|2027
|{{Increase}}4,524.5
|{{Increase}}65,857.4
|{{Increase}}4,449.8
|{{Increase}}64,768.9
|{{Increase}}1.5%
|{{Increase}}2.0%
|{{Steady}}4.2%
|{{DecreasePositive}}68.0%
|}

==See also==
* [[Economy of England]] 
* [[Economy of Scotland]]
* [[Economy of Wales]]
* [[Economy of Northern Ireland]] 
* [[UK Infrastructure Bank]]
* [[Jobseeker's Allowance]] 
* [[Universal Credit]] 
* [[Welfare state in the United Kingdom]] 
* [[Universal basic income in the United Kingdom]]  

==Notes==
{{notelist}}

==References==
{{reflist|25em}}

==Bibliography==
* {{cite book|url=https://www.gov.uk/government/statistics/agriculture-in-the-united-kingdom-2019|title=Agriculture in the United Kingdom 2019|author=DEFRA|year=2020|publisher=HM Government|isbn=978-1-8397-2093-2}}

==Further reading==
* [[Gregg, Pauline]]. ''A Social and Economic History of Britain: 1760–1950'' (1950) [https://archive.org/details/dli.ernet.12867 online]

==External links==
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* [https://www.ons.gov.uk/economy Economy] at the [[Office for National Statistics]]
* [https://www.cia.gov/the-world-factbook/countries/united-kingdom/ UK profile] at the [[CIA World Factbook]]
* [https://www.worldbank.org/en/country/unitedkingdom UK profile] at [[The World Bank]]

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