Economy - overview The UK, a leading trading power and financial center, is one of the quartet of trillion dollar economies of Western Europe. Over the past two decades the government has greatly reduced public ownership and contained the growth of social welfare programs. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs with only 1% of the labor force. The UK has large coal, natural gas, and oil reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial nation. Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. GDP growth slipped in 2001 as the global downturn, the high value of the pound, and the bursting of the "new economy" bubble hurt manufacturing and exports. Still, the economy is one of the strongest in Europe; inflation, interest rates, and unemployment remain low, and the government expects growth of 2% to 2.5% in 2002. The relatively good economic performance has complicated the BLAIR government's efforts to make a case for Britain to join the European Economic and Monetary Union (EMU). The Prime Minister has pledged to hold a public referendum if membership meets Chancellor of the Exchequer BROWN's five economic "tests." Scheduled for assessment by mid-2003, the tests will determine whether joining EMU would have a positive effect on British investment, employment, and growth. Critics point out, however, that the economy is thriving outside of EMU, and they point to public opinion polls that continue to show a majority of Britons opposed to the single currency.

GDP purchasing power parity - $1.47 trillion (2001 est.)

GDP - real growth rate 2.4% (2001 est.)

GDP - per capita purchasing power parity - $24,700 (2001 est.)

GDP - composition by sector
agriculture: 1.7%
industry: 24.9%
services: 73.4% (1999)

Population below poverty line 17%

Household income or consumption by percentage share
lowest 10%: 2.6%
highest 10%: 27.3% (1991)

Distribution of family income - Gini index 36.1 (1991)

Inflation rate (consumer prices) 1.8% (2001 est.)

Labor force 29.7 million (2001)

Labor force - by occupation agriculture 1%, industry 25%, services 74% (1999)

Unemployment rate 5.1% (2001 est.)

Budget
revenues: $565 billion
expenditures: $540 billion, including capital expenditures of $NA (FY01)

Industries machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing, and other consumer goods

Industrial production growth rate -1.6% (2001 est.)

Electricity - production 355.761 billion kWh (2000)

Electricity - production by source
fossil fuel: 73.26%
hydro: 1.46%
other: 2.31% (2000)
nuclear: 22.97%

Electricity - consumption 345.032 billion kWh (2000)

Electricity - exports 134 million kWh (2000)

Electricity - imports 14.308 billion kWh (2000)

Agriculture - products cereals, oilseed, potatoes, vegetables; cattle, sheep, poultry; fish

Exports $287 billion (f.o.b., 2001)

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

Exports - partners EU 54% (Germany 11%, France 9%, Netherlands 7%, Ireland 7%), US 15% (2000)

Imports $337 billion (c.i.f., 2001)

Imports - commodities manufactured goods, machinery, fuels; foodstuffs

Imports - partners EU 48% (Germany 11%, France 7%, Netherlands 6%), US 13%, Japan 5% (2000)

Debt - external $NA

Economic aid - donor ODA, $4.5 billion (2000)

Currency British pound (GBP)

Currency code GBP

Exchange rates British pounds per US dollar - 0.6981 (January 2002), 0.6944 (2001), 0.6596 (2000), 0.6180 (1999), 0.6037 (1998), 0.6106 (1997)

Fiscal year 1 April - 31 March

NOTE: The information regarding United Kingdom on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of United Kingdom Economy 2002 information contained here. All suggestions for corrections of any errors about United Kingdom Economy 2002 should be addressed to the CIA.