Indicators of economy in the United Kingdom
The main economic performance of a country can be seen from its gross domestic product. In other words, the total quantity of all goods and services sold within the United Kingdom minus intermediate consumption. Worldwide gross domestic product in 2022 was at about 12,646 USD per capita. GDP in the United Kingdom, on the other hand, reached USD 45,568 per capita, or 3.089 trillion USD for the whole country. The United Kingdom is one of the world's largest economies and is currently at rank 6. If this is calculated per inhabitant, taking purchasing power parity into account, then the United Kingdom is in the list of the world's richest countries in place 29.Inflation in the United Kingdom in 2022 was around 7.92%. Within the EU, the average in the same year was 8.83 percent. In the United States, it was most recently 8.00%.
The index for perceived corruption in the public sector is 71, which is above average by global standards.
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The consequences of Brexit
The economic consequences of Brexit for the UK in 2020 have affected various sectors of the economy in different ways. Leaving the EU led to the reintroduction of significant trade barriers with the EU. Smaller companies in the manufacturing industry in particular had difficulties adapting to the new non-tariff trade barriers. This resulted in a general decline in the UK's trade intensity. In 2020, GDP fell by over 7%, but this was also due to the impact of the Covid19 pandemic. The Centre for Economic Policy Research (CEPR) now assumes that Brexit only impacted the UK economy by 2-3%.The service sector, particularly financial services, remained largely stable. Trade, on the other hand, slumped more sharply. The lack of a trade agreement between the European Union and the United Kingdom initially hampered growth, but trade also recovered in the years that followed. The restraint was felt more clearly in the area of corporate investment, which is around 10% lower than it would have been without Brexit. In the meantime, however, gross domestic product has recovered significantly and has even risen by 15% compared to the years before Brexit.
In summary, Brexit has significantly slowed economic growth in the UK. The losses have not yet been recovered in all sectors. The adjustment to new trade relations was certainly painful, but is largely complete. The switch to a more selective immigration policy could even bring long-term benefits.
Income and purchasing power
The average monthly income in the United Kingdom is 4,103 US Dollar per capita. In the USA, the figure is 6,398 US Dollar. However, the prices of consumer goods are also around 9.1 percent lower than in the USA. If you compare income and price levels, the result is a more expensive life in the United Kingdom than in the United States. The bottom line is that the costs do not offset the lower income, and you get about 29.4 percent less.However, it is also important to remember that this is a purely statistical model. Both the labor output and the type and quality of the goods received always correspond to the national average on both sides of the equation - so they do not necessarily have to match. Here you can also find an international comparison of cost of living and purchasing power.
The income tax payable in the United Kingdom on all income is comparatively high compared to other OECD countries. A married couple with 2 children and normal average income pays on average 13.2% income tax. The total tax burden including social security contributions but excluding employer contributions is 19.3%. The top tax rate is 40.0 percent. Please also read our country comparison of income tax.
Economic performance 2022
| Indicator | United Kingdom Total | United Kingdom per capita | EU Total | EU per capita |
|---|---|---|---|---|
| GDP | 3.089 tn USD | 45,567.59 USD | 16.747 tn USD | 32,507.37 USD |
| Gross national product | 3.298 tn USD | 48,649.17 USD | 17.949 tn USD | 34,842.43 USD |
In the Global Innovation Index, the United Kingdom ranked 4th in 2023 with 62.4 points. The index is calculated annually by the World Intellectual Property Organization (WIPO) and most recently included 129 countries. The top country was Switzerland with 67.6 points. Out of the 2,000 largest listed companies in the world, 67 originate from the United Kingdom. This is determined annually in the Forbes Global 2000 list. The 10 largest companies in the country in 2023 were:
| Rank | Company | City | Employees | Revenues | Market value |
|---|---|---|---|---|---|
| #11 | Shell | London | 93,000 | 365.89 bn US$ | 205.45 bn US$ |
| #20 | HSBC Holdings | London | 219,000 | 73.98 bn US$ | 151.19 bn US$ |
| #28 | BP | London | 67,600 | 248.11 bn US$ | 108.30 bn US$ |
| #101 | Rio Tinto | London | 53,726 | 55.34 bn US$ | 102.09 bn US$ |
| #104 | Unilever | London | 127,000 | 63.11 bn US$ | 140.02 bn US$ |
| #110 | British American Tobacco | London | 50,397 | 34.07 bn US$ | 78.90 bn US$ |
| #126 | AstraZeneca | Cambridge | 83,500 | 43.85 bn US$ | 233.12 bn US$ |
| #147 | Lloyds Banking Group | London | 59,354 | 27.97 bn US$ | 37.83 bn US$ |
| #162 | Linde | Woking | 65,010 | 33.35 bn US$ | 179.61 bn US$ |
| #164 | Barclays | London | 87,400 | 30.94 bn US$ | 30.04 bn US$ |
Development of gross domestic product in billions of USD 1960 - 2022
Impact of the COVID-19 pandemic
The consequences of the COVID pandemic were not insignificant in the United Kingdom 2020. Overall, gross domestic product in 2020 fell from 2.851 trillion US dollars to 2.698 trillion US dollars. With a drop of 5.4 percent, the economy in the United Kingdom suffered more significant losses than other countries. The tourism sector alone slumped by around 54 percent. The unemployment rate rose from 3.7 to 4.5 percent. The country's gross debt increased by 14.5 percent. The inflation rate fell from 1.7 percent previously to 1.0 percent by the end of 2020.There was already a recovery in 2021 and gross domestic product rose to 3.142 trillion (=110.2% of 2019).
Strong service sector
The UK is characterized by its strong service industry and financial sector. As one of the largest economies, the UK particularly benefits from its financial, insurance and real estate capabilities, with London standing out as a global financial center. The service sector accounts for around 80% of gross domestic product. Industrial production, on the other hand, is significantly lower.Key industries include automotive production, aerospace and pharmaceuticals. Companies such as Rolls-Royce in engine manufacturing and BAE Systems in defense and aerospace engineering are examples of industrial expertise. In addition, the UK is a leading exporter of pharmaceutical products and generates significant revenue from the export of technology services.
Largest economic sectors
- Machine tools
- Electric power equipment
- Automation equipment
- Railroad equipment
- Shipbuilding
- Aircraft
- Motor vehicles and parts
- Electronics and communications equipment
- Metals
- Chemicals
- Coal
- Petroleum
- Paper and paper products
- Food processing
- Textiles
- Clothing
- Consumer goods
Imports and Exports 2022
| Indicator | United Kingdom Total | United Kingdom per capita | EU Total | EU per capita |
|---|---|---|---|---|
| Imports | 1.112 tn USD | 16,403.60 USD | 9.114 tn USD | 17,691.07 USD |
| Exports | 1.024 tn USD | 15,106.54 USD | 9.446 tn USD | 18,336.23 USD |
Development of imports and exports in billions of USD 1970 - 2022
Household debt and deficits 2022
| Indicator | United Kingdom Total | United Kingdom per capita | EU Total | EU per capita |
|---|---|---|---|---|
| Government debts | 3.131 tn USD | 46,189.11 USD | 16.975 tn USD | 32,950.75 USD |
| Budget deficit | 65.32 bn USD | 963.56 USD | 560.78 bn USD | 1,088.56 USD |
› Development of inflation
› Corruption in the United Kingdom
› Cost of living in a global comparison
Largest airports and airlines in the United Kingdom
Comparison of income tax by country
List of the 13 current Pariah States