World Rank: 13
GDP: $2.4 trillion / $14.4 trillion less than the US
GDP growth %: 1.8% growth / .1% less than the US
GDP per capita: $37,307 per capita / $15,794 per capita less than US
Unemployment: 7.5% / same as US
Inflation: 2.6% / 1.1% more than US
Foreign Direct Investment: $37.1 billion / $150.4 billion less than US
Private property rights and contracts are very strong. These rights are strongly and efficiently upheld and enforced through the court system. Protection of intellectual property rights is strong as well. The UK's economy is based on a sturdy rule of law. Also, the United Kingdom is based on an open trading environment. Corruption is not very common in the United Kingdom, however there have been some cases that have caught the attention of people quite strongly.
United kingdom's three main sectors for economy include services, manufacturing and construction. In the past year, the GDP in these sectors soared and the economy rose due to competition in markets. Also lat year, the economy experienced a huge growth since the year 2007. In the United Kingdom, there is an independent non-ministerial department called the CMA (the Competitive & Markets Authority). This department works to keep the markets competitive and the consumers happy. As the picture to the right shows, the UK is the 9th most competitive economy.
Limits on Government Regulation
An Efficient Capital Market
In the United Kingdom, the monetary policy includes using interest rates and other ways to influence consumer spending. In the UK their goal is to keep the inflation around 2% +/- 1. Currently the inflation is at 2.6%. The monetary policy is set by the Monetary Policy Committee of the Bank of England. If the committee suspects that inflation will increase they will increase interest rates and vice versa. They have also used Quantitative Easing to electronically buy assets like government bonds to increase money supply.
Low Tax Rates
In the United Kingdom, the highest individual income tax rate is 45% and the highest corporate tax rate is 21%. Along with income taxes, the UK places taxes such as value-added taxes and environment taxes. The UK has the ninth highest tax burden for people earning over 125,000 British pounds or $186,000 a year. It was found that after taxes, they keep about 60.8% of what they earned. The people earning over 950,000 pounds ($1,419,000) keep only half of what they make after taxes.
Multinational grocery and general merchandise retailer.
British multinational telecommunications company
Royal Dutch Shell
Anglo–Dutch multinational oil and gas company
- London has the credit for the first hot chocolate store ever opened
- Almost 75% of the land in the UK is taken for farming
- Polo, soccer and Rugby were introduced to the world by the UK
- Big Ben refers to the bell and not the clock
- The highest point is Ben Navis at 1,343 m and the lowest point is -4m at The Fens
- No point in UK is more than 120 km (75 miles) from the sea