Economy - overview The UK is one of the world's great trading powers and financial centers,and its essentially capitalistic economy ranks among the four largest in WesternEurope. Over the past 17 years the ruling Tories have greatly reduced publicownership and contained the growth of social welfare programs. Agricultureis intensive, highly mechanized, and efficient by European standards, producingabout 60% of food needs with only about 1% of the labor force. The UK haslarge coal, natural gas, and oil reserves; primary energy production accountsfor 12% of GDP, one of the highest shares of any industrial nation. Services,particularly banking, insurance, and business services, account by far forthe largest proportion of GDP while industry continues to decline in importance,now employing only 25% of the work force. The economy registered 3.9% GDPgrowth in 1994, the best rate for six years, but slipped back to 2.7% in 1995and 2.4% in 1996. Exports and manufacturing output have been the primary enginesof growth. Unemployment is gradually falling. Inflation is a comfortable 2.6%.A major economic policy question for the UK in the late 1990s is the termson which it participates in the financial and economic integration of Europe.

GDP purchasing power parity - $1.19 trillion (1996 est.)

GDP - real growth rate 2.4% (1996 est.)

GDP - per capita purchasing power parity - $20,400 (1996 est.)

GDP - composition by sector
agriculture: 1.9%
industry: 34.1%
services : 64% (1994 est.)

Inflation rate - consumer price index 2.6% (1996 est.)

Labor force
total : 28.1 million (September 1996)
by occupation: services 62.8%, manufacturing and construction 25.0%, government 9.1%,energy 1.9%, agriculture 1.2% (June 1992)

Unemployment rate 6.7% (December 1996)

Budget
revenues : $421.5 billion
expenditures: $474.9 billion, including capital expenditures of $NA (FY95/96 est.)

Industries production machinery including machine tools, electric power equipment,automation equipment, railroad equipment, shipbuilding, aircraft, motor vehiclesand 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% (1996 est.)

Electricity - capacity 66.15 million kW (1994)

Electricity - production 327.7 billion kWh (1995)

Electricity - consumption per capita 5,178 kWh (1995 est.)

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

Exports
total value: $240.4 billion (f.o.b., 1995)
commodities : manufactured goods, machinery, fuels, chemicals, semifinished goods,transport equipment
partners: EU countries 56.4% (Germany 12.7%, France 9.9%, Netherlands 7.0%), US13.1% (1994)

Imports
total value : $258.8 billion (f.o.b., 1995)
commodities: manufactured goods, machinery, semifinished goods, foodstuffs, consumergoods
partners: EU countries 54.9% (Germany 14.6%, France 10.0%, Netherlands 6.7%),US 12.2% (1994)

Debt - external $16.2 billion (June 1992)

Economic aid
donor: ODA, $2.908 billion (1993)

Currency 1 British pound (£) = 100 pence

Exchange rates British pounds (£) per US$1 - 0.6023 (January 1997), 0.6403 (1996),0.6335 (1995), 0.6529 (1994), 0.6658 (1993), 0.5664 (1992)

Fiscal year 1 April - 31 March

NOTE: The information regarding United Kingdom on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of United Kingdom Economy 1997 information contained here. All suggestions for corrections of any errors about United Kingdom Economy 1997 should be addressed to the CIA.