The United Kingdom is one of the world’s leading trading power and financial center. This article will give you UK economic overview. UK economy is the third-largest economy in Europe after Germany and France. Services particularly banking, insurance, and business services are the key drivers of the UK economy.
However, UK economic growth has been weaker than other G7 economies since 2016 referendum on leaving the European Union. The United Kingdom economy has even contracted in the second quarter of 2019. The UK’s economy has increased by 1.4% in 2019 as compared to 2018. The service sector which employs more than 80% of the workforce, contributes more than 70% of the UK economic growth. The construction sector grew by only 0.1% while the manufacturing sector had a down fall by 1.1%.
The UK economy size has been neutral after 2020. Even after the pandemic, the average UK economic growth rate, the employment rate has reached heights. The unemployment rate is estimated to be 3.8% of the working population. The uncertainty because of Brexit has increased pressures on the future of the UK economy. The depreciation of the pound sterling increased the cost of imports and reduced the margins achieved by businesses affecting the United Kingdom economy.
What this means For International Students
The economy of the UK has been affected by the global slowdown. In the manufacturing sector, there was a small increase in the number of companies reporting improved sales and orders.
The number of working people in the UK has risen continuously in 2021. The three quarters of working-age people are in work and are highest since records began. To be short, the UK economy has been growing.