briefly describes each and every aspect of the economy of UK

1. THE ECONOMY OF
UNITED KINGDOM
By: Batool Mehdi

2. The United Kingdom is the sixth largest
economy in the world by nominal GDP
The sixth largest by purchasing power
parity
The United Kingdom is the second largest
financial economy in the World

3. About United Kingdom
 Currency: Pound sterling (GBP)
 Trade organizations:
1. European union
2. Berkshire County Network/
3. Organization for Economic Co-operation
and Development
4. World Trade organization/
 Population: 64,105,654, ranked 22nd

4.  Labour force (by occupation):
1. agriculture: 1.4%;
2. industry: 8%;
3. services: 90.6%
 Unemployment: 8.4%
 Average net salary: €2,749 / $3,712,
monthly

5. Main industries of UK
1. Aerospace
2. Automotive
3. Business and professional services
4. Chemicals
5. Construction
6. Consumer goods
7. Defense equipment
8. Education
9. Electronics
10. Energy and utilities

6.  GDP: $2.634 trillion (PPP, 2014)
$2.902 trillion (Nominal, 2014)
 GDP growth: +0.9% Q2 2014
 GDP per capita: $41,092 ( PPP, 2014)
$45,273 ( Nominal, 2014)
 GDP by sector: Agriculture: 0.7%
Construction: 6.3%
Production: 15.2%
Services: 77.8% (2013 est.)
 Inflation (CPI): 1.2% (September 2014)
(RPI): 2.3% (September 2014)

7. Imports and Exports of UK
 Exports: $813.2 billion
 Main export partners: Germany 11.3%,
United States 10.5%,
Netherlands 8.8%,
France 7.4%,
Ireland 6.2%,
Belgium 5.1% (2012)
 Imports: $782.5 billion
 Main import partners: Germany 12.6%,
China 8%,
Netherlands 7.5%,
United States 6.7%,
France 5.4%,
Belgium 4.4% (2012)

8. History of the UK economy
 The period of time from the 1770s to the
1820s is known as the “industrial revolution”.
 The new industries proved to be far more
efficient in producing goods
 After 1840 Britain committed its economy to
free trade, with few barriers or tariffs.
 Foreign trade tripled in volume between
1870 and 1914
 By the 1870s, financial houses in London had
achieved an unprecedented level of
control over industry.

9.  London became the world’s financial
capital
 The export of capital was a major base of
the British economy 1880 to 1913.
 This period was known as the "golden era" of
international finance.

10. The Thatcher era
 This era brought a new approach
to the economic policy
 Which included,privatisation,
deregulation, reform of industrial
relations, and tax changes.
 Competition policy was
emphasised
 deindustrialisation and structural
unemployment was accepted
 The Government
applied monetarist policies to
reduce inflation
 Major state-controlled firms were
privatised

11. UK today
 The Bank of England is
the central bank,
responsible for issuing
currency
 The currency of the UK is
the pound sterling (£)

12.  In recent years, the UK economy has been
managed in accordance with principles of
market liberalization and low taxation and
regulation.
 Since 1997, the Bank of England's Monetary
Policy Committee, has been responsible for
setting interest rates
 In order to achieve the overall inflation
target for the economy
 In January 2009, UK was officially in
recession
 Unemployment rates also increased from
5.2% in May 2008 to 7.6% in May 2009.

13. Poverty in UK
 The poverty line in UK is commonly defined
as being 60% of the median household
income
 4.0 million children, 31% of the total, lived in
households below the poverty line, after
housing costs were taken into account.

14. The UK service sector
 It grown substantially and makes up about
73% of GDP.
 The service sector is dominated by financial
services, especially in banking and
insurance.
 London is the world's largest financial
centre with : 1. London stock exchange
2. Lloyd's of London insurance
3.london international financial
futures and options exchange

15. Tourism in UK
 Tourism is very important to the UK
economy.
 With over 27 million tourists arriving in 2004
 The United Kingdom is ranked as the sixth
major tourist destination in the world.
 London, is the most visited city in the world
with 15.6 million visitors in 2006

16. Resources in UK
 The UK has a small coal reserve along with
continuously declining natural gas and oil reserves.
 Over 400 million tones of proven coal reserves
have been identified in the UK.
 In 2004, total UK coal consumption (including
imports) was 61 million tones
 Allowing the UK to be self sufficient in coal for just
over 6.5 years
 North Sea oil and gas have supplied much of the
UK's energy needs in recent decades
 However the country now increasingly depends
on imported fossil fuels.

17. Entrepreneurship in UK
 Many multinational companies that are not
primarily UK-based have chosen to site their
headquarters in London
 An example is the US financial services firm
Citigroup.
 Rolls-Royce holds a major share of the
global aerospace engines market.
 The chemical and pharmaceutical industry
is strong in the UK, with the world's second
and sixth largest pharmaceutical firms;
GlaxoSmithKline and AstraZeneca
respectively

18.  Manufacturing remains a significant part of
the economy
 However it only accounts for one sixth of the
national output in 2003
 The British motor industry is a significant part
of this sector
 Civil and defense aircraft production is led
by the second largest defense contractor in
the world

19. Thank you 