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United Kingdom - Country Profile

The UK, a leading trading power and financial center, is one of the quartet of trillion dollar economies of Western Europe. Over the past two decades the government has greatly reduced public ownership and contained the growth of social welfare programs. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs with less than 2% of the labor force. The UK has large coal, natural gas, and oil reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial nation.

Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. GDP growth slipped in 2001-03 as the global downturn, the high value of the pound, and the bursting of the "new economy" bubble hurt manufacturing and exports. Output recovered in 2004, to 3.2% growth. The economy is one of the strongest in Europe; inflation, interest rates, and unemployment remain low. The relatively good economic performance has complicated the BLAIR government's efforts to make a case for Britain to join the European Economic and Monetary Union (EMU). Critics point out that the economy is doing well outside of EMU, and they cite public opinion polls that continue to show a majority of Britons opposed to the euro. Meantime, the government has been speeding up the improvement of education, transport, and health services, at a cost in higher taxes.

Economic Statistics
Exports : $347.2 billion f.o.b. (2004 est.)
Commodities :
manufactured goods, fuels, chemicals; food, beverages, tobacco
US 15.3%, Germany 10.8%, France 9.2%, Ireland 6.8%, Netherlands 6%, Belgium 5.1%, Spain 4.5%, Italy 4.2% (2004)
Imports $439.4 billion f.o.b. (2004 est.)
Commodities :
manufactured goods, machinery, fuels; foodstuffs
Partners :
Germany 13%, US 9.3%, France 7.4%, Netherlands 6.6%, Belgium 4.9%, China 4.3%, Italy 4.3% (2004)