The Economy of theUNITED KINGDOM

Domenic Denicola

Collin Sanders

In Comparison

United Kingdom United States GDP ranking 4th 1st Total GDP $1.74 trillion $12.73 trillion GDP per capita $30 309 $41 747 GDP growth rate 1.9 % 3.3 % Unemployment rate 4.7 % 4.9 % Public debt $8 trillion $0.6 trillion Labor force 29.6 million 140 million

Industries

Services 46 % Government 28 % Manufacturing/construction 24 % Energy 1 % Agriculture 1 %

Take a guess (percentage-wise) as to how much of the economy is in the government sector.

Taxes

Misery Index: 111.3 Overall tax burden: 35.9 %

– Mostly sales tax and individual income taxes– Comparatively low social security taxes

United Kingdom United States < $7300 10 %

< $3600 10 % (Starting rate) $7300–$30 000 15 %

$30 000–$72 000 25 % $3600–$56 000

22 % (Basic rate) $72 000–$150 000 28 %

$150 000–$326 000 33 % > $56 000

40 % (Higher rate) > $326 000 35 %

Currency

The Pound Sterling: £– Originally the price of one pound of sterling silver. – Among the highest valued of all currencies in the

world

Interest Rates and the Bank of England– Gordon Brown– Target inflation: 2 %

Currency: The Euro

UK: opted out of the Euro (€) ERM II

– Euro comes from this– “Black Wednesday”

Current administration: pro-Euro– But the populace isn’t so keen on it