UK GDP: structure. Economy of Great Britain

During its heyday in the 19th century, the British Empire occupied one-fourth of the land area. As a result of the redistribution of the world during the two world wars, it lost a significant part of its colonial territories. However, already in the second half of the 20th century, the UK's GDP again made the country one of the most developed. The United Kingdom became the founder of many modern international organizations. From 1973 to 2016, Great Britain was an active member of the European Union.

The United Kingdom plays a significant role in the world economy. It produces about 3% of the global gross domestic product at purchasing power parity. Its share in world exports is 4.6%, import - 5.1%. The average salary in the country is about 4 thousand US dollars.

Economy Overview

Great Britain is a leading trading power and financial center. Its economy is the third in Europe after Germany and France. The nominal GDP of the UK in 2015 amounted to 2.894 trillion US dollars. Agriculture is intensive, highly mechanized and efficient by European standards. With employment of only 2% of the labor force, this sector meets 60% of the country's food needs. The population of the UK is more than 64 million people. On the territory of the country there are deposits of coal, natural gas and oil. However, these reserves are rapidly depleted.

Since 2005, the UK has been a net importer of energy resources. The service sector was the key to the growth of the state. The importance of the industry is gradually decreasing. To date, this sphere is responsible for only 20% of UK GDP. More and more young people want to work in this industry. The future of the UK economy is most likely related to the services sector, namely its financial segment.

Economic crisis and exit from the EU

The decline in 2008 hit the national economy of Great Britain. This is due to the importance for the country of the financial sector. The fall in house prices, high consumer debt and the global economic recession have added to the country's internal problems. This forced the Labor Party to think about measures to stimulate and stabilize financial markets.

In 2010, a new government, the majority of which were conservatives, was headed by Cameron. A program was developed to combat the state budget deficit and a high level of debt. However, it did not bring significant results. As of mid-2015, the budget deficit was 5.1% of the UK's GDP. This is one of the highest rates among the G-7 countries. In 2012, a low level of consumer spending and investment had a negative impact on the economy, but gross product grew by 1.7% in 2013 and by 2.8% in 2014. This was due to the restoration of prices in the housing market and the growth of consumer spending.

Since the beginning of 2015, the Bank of England began gradually, against the backdrop of growth in gross domestic product, to raise interest rates, which, because of the state of the economy, were record low. Nevertheless, because of the frustration in the Brussels bureaucracy and the flow of migrants, British citizens on June 23, 2016 voted to withdraw from the EU. The direct separation of the country's economy from the European Union may take years, but this event may become a trigger for holding such referendums in other countries. How this will affect the economy of the UK and the EU itself, is still in doubt.

Main factors

The main indicators of the economy of the state are as follows:

• The population of Great Britain is 64066222 people.
• Of these, 15% live below the poverty line.
• Nominal GDP - 2,849 trillion US dollars (5th place in the world), at purchasing power parity - 2.679 (9th).
• The growth of the economy is 2.1% in 2016.
• Nominal GDP per capita - 43770 US dollars (13th in the world), at purchasing power parity - 41158 (27th).
• The unemployment rate is 4.9%.

GDP of Great Britain by years

In 2015, the gross domestic product amounted to 2848.76 billion US dollars. This is 4.59% of the world total. The UK's highest GDP growth rates were in the early 1970s. Gross domestic product could increase by 6.5% per year. In the early 1990s, the economy grew by 4% a year. In the period from 1992 to 2007 GDP grew by an average of 2.68%. The average gross domestic product for the period 1960-2015 amounted to $ 1081.01 billion. A record low value was recorded in 1960, high - in 2014th.

The UK stands out as the fastest growing economy among the G-7 countries over the past four years. She has the lowest unemployment and inflation rate. The state of its economy now looks like one of the most stable in the European Union. However, after the announcement of the results of the referendum on the withdrawal from the EU, the pound sterling rate fell to a record low. Strengthen or, conversely, the negative impact on the economy of the decision to withdraw from the EU, will show the future.

UK GDP Structure

Agriculture produces less than 1% of GDP. It is intense and highly mechanized. This sector employs 1.5% of the economically active population of the United Kingdom. About two thirds of agriculture is in livestock. It is subsidized by the program of the European Union. Of great importance is also fishing. In industry, 18.8% of the labor force is employed. To date, this industry is gradually losing its importance.

The UK industry accounts for 21% of GDP. The most important sector is the service sector. It employs a large part of the working-age population. It gives 78.4% of GDP. The most important branch is financial services. Therefore, Great Britain suffered such large losses during the recent global economic crisis. London is an important financial center. In second place is the aerospace industry. The third - the pharmaceutical industry in the UK.

Regional section

London is the city with the largest GDP in Europe. In the United Kingdom, there are significant differences between regions in terms of economic development. The richest in terms of GDP per capita is the south-east of England and Scotland. The poorest region is Wales. Two of the ten richest areas in the European Union are in the UK. In the first place - London. The GDP per capita of this city is 65,138 euros.

In the seventh place - Berkshire, Buckinghamshire and Oxfordshire. The GDP per capita here is 37379 euros. Edinburgh, like London, is one of the largest financial centers in Europe. In contrast, Cornwall has the lowest gross value added per capita. The region receives additional funding from the EU since 2000.

International organizations

One of the most active members of the European Union from 1973 to 2016 was the United Kingdom. The economy of the country is tied to this association. However, in June 2016, the inhabitants of Great Britain at a general referendum decided to withdraw from the EU. The very process of refusing membership can take several years. Also, Great Britain is in the Commonwealth of Nations, the UN, the IMF, the OECD, the World Bank, the WTO, the Asian Bank for Infrastructure Investments.

Foreign economic sector

The volume of exports in 2015 amounted to 442 billion US dollars. This is the eleventh place in the world. The main export partners of Great Britain are the following countries: United States of America, Germany, Switzerland, China, France, Netherlands, Ireland.

The volume of imports as of 2015 is 617 billion US dollars. For this indicator, Great Britain is in sixth place. The main import partners are Germany, China, the United States of America, the Netherlands, France, Belgium. The main export items of the country are engineering, transport, chemicals. The UK accounts for about 10% of world exports of financial services.