The following infographic provides an overview of the UK Economy 2016. According to GDP, the UK has one of the most powerful economies in Europe. The recent vote on Brexit will certainly affect the country’s economy in one way or the other. However, it is important to note most of these impacts have yet to manifest themselves. For now, GDP at official exchange rates is reported at USD 2.68 trillion (2.95 trillion in 2014) with a real growth rate of 2.2% (2.6% in 2014). Meanwhile, per capita GPD (PPP) has increased slightly to USD 41’200 in 2015 from USD 39’500 in 2014.
Income vs Expenditure
The UK has reduced its budget deficit to USD 128 billion (from USD 169.8 billion in 2014) or roughly 4.5% of the country’s GDP. Public debt currently stands at 90.6% of GDP, as compared to 79.1% in 2014. In addition to that, the inflation rate has dropped to 0.1% in 2015 (1.5% in 2014). The UK has experienced decreasing imports and exports over the last year, which results in a current account balance of USD -123.5 billion (USD -162.2 billion in 2014). It will be interesting to see, how these numbers change in the near future as the impact of Brexit becomes more apparent.
There have not been any significant changes when it comes to the largest industries. Industries in the UK are still highly diversified with an emphasis on services. The largest industries by employment are health care & social assistance and retail trade. Other relevant industries include manufacturing, construction, professional scientific & technical activities, and administrative & support service activities.
Labor force and Unemployment
The UK labor force has increased slightly over the last year. It has grown to 32.9 million (32.6 million in 2014). Meanwhile, the country has managed to reduce the unemployment rate to 4.9% (5.7% in 2014). If we look at the unemployment by region, we can see that the lowest rate is found in the East at 3.2%. Meanwhile, the North East still finds itself with the highest unemployment rate at 7.5%, despite slightly increased numbers (7.7% in 2014).
Household Income and Poverty
The UK still ranks above average in terms of income equality (according to the Gini index). In 2015, the median household income has decreased to USD 30’526 (42’440 in 2014). Other than that, there have not been any significant changes regarding household income and poverty. Still, about 15% of the population live below the poverty line. Please note that the reported change in the country’s minimum wage (USD 8.68 in 2015 / USD 10.20 in 2014) is due to changes in the official exchange rate. The hourly minimum wage (aged 21+) still stands at GBP 6.65.
Last Year’s Report
<a href="https://quickonomics.com/2016/09/overview-of-the-uk-economy-2016/"><img src="https://quickonomics.com/wp-content/uploads/2016/09/overviewoftheukeconomy.png" alt="Overview of the UK Economy 2016" /></a><br />Source: <a href="https://quickonomics.com/">Quickonomics</a>