England United Kingdom: Economy
The World Factbook 1993: United Kingdom Economy

Overview: The UK is one of the world's great trading powers and financial centers, and its economy ranks among the four largest in Europe. The economy is essentially capitalistic; over the past thirteen years the ruling Tories have 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, and primary energy production accounts for 12% 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, now employing only 25% of the work force and generating 21% of GDP. The economy is emerging out of its 3-year recession with only weak recovery expected in 1993. Unemployment is hovering around 10% of the labor force. The government in 1992 adopted a pro-growth strategy, cutting interest rates sharply and removing the pound from the European exchange rate mechanism. Excess industrial capacity probably will moderate inflation which for the first time in a decade is below the EC average. The major economic policy question for Britain in the 1990s is the terms on which it participates in the financial and economic integration of Europe.

National product: GDP - purchasing power equivalent - $920.6 billion (1992)

National product real growth rate: -0.6% (1992)

National product per capita: $15,900 (1992)

Inflation rate (consumer prices): 3.6% (1992)

Unemployment rate: 9.8% (1992)

Budget: revenues $367.6 billion; expenditures $439.3 billion, including capital expenditures of $32.5 billion (FY92 est.)

Exports: $187.4 billion (f.o.b., 1992) commodities: manufactured goods, machinery, fuels, chemicals, semifinished goods, transport equipment partners: EC countries 56.7% (Germany 14.0%, France 11.1%, Netherlands 7.9%), US 10.9% Imports: $210.7 billion (c.i.f., 1992) commodities: manufactured goods, machinery, semifinished goods, foodstuffs, consumer goods partners: EC countries 51.7% (Germany 14.9%, France 9.3%, Netherlands 8.4%), US 11.6%

External debt: $16.2 billion (June 1992)

Industrial production: growth rate 0.4% (1992 est.)

Electricity: 99,000,000 kW capacity; 317,000 million kWh produced, 5,480 kWh per capita (1992)

Industries: production machinery including machine tools, electric power equipment, equipment for the automation of production, 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

Agriculture: accounts for only 1.5% of GDP and 1% of labor force; highly mechanized and efficient farms; wide variety of crops and livestock products produced; about 60% self-sufficient in food and feed needs; fish catch of 665,000 metric tons (1987)

Illicit drugs: increasingly important gateway country for Latin American cocaine entering the European market

Economic aid: donor - ODA and OOF commitments (1970-89), $21.0 billion

Currency: 1 British pound (#)=100 pence

Exchange rates: British pounds (#) per US$1 - 0.6527 (January 1993), 0.5664 (1992), 0.5652 (1991), 0.5603 (1990), 0.6099 (1989), 0.5614 (1988)

Fiscal year: 1 April-31 March