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United Kingdom

United Kingdom

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United Kingdom

London skyline seen from the River Thames

Economic Profile

The British economy has recorded a significant upswing since 2013 after a deep recession. However, the economic output per capita has come back to the level before the financial crisis. In 2014, UK’s gross domestic product grew by 2.9 percent to stand at 2.490 trillion USD, the 5th highest in the world.

 

A relatively high proportion of this GDP is generated by services (79 percent), with the financial sector playing a crucial role. Following the sharp economic downturn due to the international financial crisis, the British government sought a sectorially and regionally balanced economy. In this regard, the government strives to strengthen the North of England in particular by attracting industries and research centers to this oft-neglected region.

 

The manufacturing sector accounts for a share of about 14 percent of GDP. Aeronautics, vehicle manufacturing, chemicals and pharmaceuticals production are important facets of this sector.

 

Foreign trade also plays a significant role for the British economy. Services occupy a high proportion of the UK's total exports at about 30%. UK has a good international competitive position in high-tech industries such as telecommunications, information technology, and biotechnology, as well as pharmaceutical and chemical industries, vehicle manufacturing, defence industries and electronics. 50 per cent of the country’s export goods go to the EU.

 

 

Why invest in the United Kingdom?

  • UK outranks many of its European counterparts in terms of ease of doing business and is ranked 7th worldwide. The country is also ranked at 19 in easy of starting a business, ahead of major regional economies.
  • UK is home to one of the best, if not the best, higher education system in Europe. This allows for a viably skilled workforce to be pumped into the labor market annually. In addition, the UK workforce is ethnically very diverse owing to the waves of immigrants that came to the country in the latter part of the last century.
  • The United Kingdom has the lowest corporate tax rate among major European economies, at 23 percent.
  • The country also encourages Research and Development and offers attractive tax credits to companies engaged in R & D activities.

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