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Economy United Kingdomof the

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2022 The economy of the United Kingdom is a highly developed social market and market- orientated economy. It is the sixth-largest national economy in the world measured by nominal gross domestic product (GDP), eighth-largest by purchasing power parity (PPP), and twenty fifth-highest by GDP per capita, constituting 3.3% of nominal world GDP By PPP (purchasing power parity) terms UK constitute 2.34% of world GDP.

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2 0 2 2• In 2020, the UK was the fifth largest exporter in the world and the fifth-largest importer. It also had the third-largest inward foreign direct investment, and the fifth-largest outward foreign direct investment. In 2020, the UK's trade with the 27 member states of the European Union accounted for 49% of the country's exports and 52% of its imports. The United Kingdom is one of the most globalised economies, and comprises England, Scotland, Wales and Northern Ireland.

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The service sector dominates, contributing 81% of GDP; the financial services industry is particularly important, and London is the second-largest financial centre in the world. Edinburgh was ranked 17th in the world, and 6th in Europe for its financial services industry in 2021. The UK technology sector is valued at US$1 trillion, third behind the United States and China. Britain's aerospace industry is the second-largest national aerospace industry. Its pharmaceutical industry, the tenth-largest in the world, plays an important role in the economy.

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Of the world's 500 largest companies, 26 are headquartered in the UK. The economy is boosted by North Sea oil and gas production; its reserves were estimated at 2.8 billion barrels in 2016, although it has been a net importer of oil since 2005. There are significant regional variations in prosperity, with South East England and North East Scotland being the richest areas per capita. The size of London's economy makes it the largest city by GDP per capita in Europe

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• Government involvement is primarily exercised by His Majesty's Treasury, headed by the Chancellor of the Exchequer, and the Department for Business, Energy and Industrial Strategy. Since 1979, management of the economy has followed a broadly laissez-faire approach. The Bank of England is the UK's central bank, and since 1997 its Monetary Policy Committee has been responsible for setting interest rates, quantitative easing, and forward guidance.

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The currency of the UK is the pound sterling, which is the world's fourth- largest reserve currency after the United States dollar, the Euro and the Japanese yen. It is also one of the 10 most- valued[clarification needed] currencies in the world.

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Thank you your attention for

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