Economic trends
The United Kingdom is the seventh global economy. However, since April 2008, the country has been going through a deep recession, deeply hit by the international financial crisis, due to the dominance of the third (financial) sector over its economy. After contracting by almost 5% in 2009, the GDP growth recovered slowly in 2010, rising to 1.7% according to estimates. Growth should remain slow in the coming years.
The crisis has damaged the country's public finances. Aid to the financial sector and fiscal stimulus measures have deepened the deficit and increased the burden of public debt, the latter reaching record levels of 10% and 70% of GDP respectively. The government's priority is therefore to improve the budgetary situation. Other reform measures have been announced, notably regarding the educational system, social security, pension system, financial regulation, taxation, etc.
The unemployment rate, before one of the lowest in Europe, has been rising sharply since the crisis and is estimated at around 8%.
Main branches of industry
The Agricultural sector accounts for less than 1% of the GDP, but is very productive. Main crops are potatoes, beetroot, wheat and barley. Livestock farming (especially sheep and cattle) continues to be a major agricultural activity, despite the crises of "mad cow" and "foot and mouth" diseases. The fishing sector is also well developed but is currently suffering from the depletion of fish volumes in the traditional fishing areas.
The United Kingdom has considerable mineral resources. Once the world's 10th biggest oil producer with huge natural gas reserves, its production is dropping fast. Nevertheless, groups like BP and Shell continue to be amongst the global leaders in the petroleum industry.
The secondary sector is not very competitive. The main activities are tool machinery, transport material and chemical products. The sectors with a good potential are information and communication technologies, bio-technology, aviation industry, renewable energies and defense.
The services sector, which employs three quarters of the active population and contributes three quarters of the GDP, is the driving force behind the economy. London remains Europe's largest financial market place, on par with New York.
International trade
The United Kingdom is one of the biggest actors of international trade. Trade represents almost 60% of its GDP. It is the world's second biggest exporter and the third biggest importer of commercial services, and the tenth biggest exporter and sixth biggest importer of goods. The United Kingdom's main trade partners are the European Union, the United States and China. The United Kingdom shows a trade deficit: after an improvement during the global recession, following a global drop in trade, the deficit has again worsened and this trend should continue in the coming years.
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Last updates: February 2012
