General Information » Economy » Uk Overview

The UK has the second-largest economy in Europe, after fellow EU member Germany, as well as the fifth-largest gross domestic product (GPD) in the world in terms of market exchange rates, and the sixth-largest by purchasing power parity.

In recent times, the British economy has seen its longest period of sustained economic growth for more than 150 years, with low interest and unemployment rates. However, the distribution of wealth has long been an issue – the UK has one of the highest levels of income inequality within the EU, with 1% of the population possessing 21% of the wealth. Official figures show that the average household

had a gross income of £24,000 per annum in 1999-2000, the most recent year for which the information is available. By comparison, the figure is £22,000 in the United States and just £700 in China.

Although British GDP grew by 1.8% in 2005, this was slower than expected – something chancellor Gordon Brown attributed to the high price of oil, the easing of house price increases and the subsequent slowdown in consumer spending. It is expected to increase in the near future.

Primary energy production in the UK accounts for 10% of GDP, one of the highest shares of any industrial nation.

The country has large coal, natural gas and oil reserves, and, thanks to the North Sea oil fields, the UK became a net hydrocarbon exporter during the 1990s.

Some of the UK’s leading companies are based in this sector including BP, Royal Dutch Shell, Cairn Energy, Centrica and Anglo American. Cars, trains and aircraft are among other important industrial exports.