Overall Score: 75.8 World Rank: 13
U.K Quick Facts/ United States
- Population: 64 Million /316.4 Million
- GDP: $2.48 Trillion/16.8 Trillion
- GDP Growth: 1.5% /1.9%
- GDP Per Capita: $40,879 /$53,101
- Unemployment: 7.5% /7.5%
- Inflation: 2.6% /1.5%
- Foreign Direct Investment: $37.5 Billion /$187.5 Billion
7 Major Sources of Economic Progress
The legal system of the UK consists of Great Britain, Wales, Scotland and Northern Ireland. The laws are mixed in the country some apply to all the countries and some can only apply to 1 or 2. Their legislature is the Acts of Parliament located in London and its the only way to pass laws to all four countries.
In Europe they are open to external trade. The United Kingdom only has 1% percents on goods from other countries. In the UK they treat domestic and foreign markets the same which can lead to less goods made in the UK since the domestic markets has less protection than other countries have for domestic markets. The government also supports a competitive market to have the best for the consumer.
Limited Government Regulation
The UK Government has little regulation and considered transparent on their trading. Their is no minimum capital on starting a business so the start up process can take less than week. This is good for entrepreneurs since they will have the chance to start quickly and the UK is known to have a great workforce and unemployment has stayed less than 5% . Inflation in the UK has fallen over the years so prices for products haven't been extremely high. It's also easy to declare bankruptcy if the entrepreneur has to and considered a straight forward.
Low Tax Rates
Unfortunately Uk biggest draw back is their Taxes. The top corporate tax is 21% and the top income tax is 45%. Government spending is up which could help citizens like free healthcare. Entrepreneurs might be turned off by the high rates.
UK uses the Pound as currency. It has been on of the most stable currency in the last 100 years. Its one of the most trade currency and worth 1.50 American dollars. While The the UK is not apart of the EU and doesn't use the euro the British pound as shown to much more stable. The pound has even been of a steady rise the last 5 years.
The UK is mostly free as being a socialist economy. Its not as free as other countries such as Switzerland or New Zealand But still ranked highly as a country for trade. What is great is there is open trade in the UK the for imported items their are low tariffs and usually only 1% free from imported items. The UK treats domestic and foreign trade almost the same.
An Efficient Capital Market
There is a lot of free trade in the UK. With low tariffs with foreign trade it makes sense for entrepreneurs to chose the open a business in the UK. Another advantage is the stable currency so entrepreneurs would not have to worry about their money worth failing. UK economy has been on a steady raise for the past 20 years.
UK Managing Director shares his views on corporation tax & UK economy growth
The video explains the growth of UK economy but the terrible harsh taxes. He goes over how high the taxes are that most people and large corporations aren't even paying them and that there needs to be a reform for the high taxes.