Management Of International Placement

Capital: London
Population: 59,251,000 (2003)
Official language: English
Time: GMT plus 0-1hr
Currency: pound
Web domain: .uk
Major religion: Christianity
International dialling code: +44

Economy

Overview: The UK is among the largest economies in the world (ranking 4th in 2001, after the US, Japan and Germany). For three decades after the Second World War, it was in decline relative to other industrialised democracies, especially in the 1970s when there was very high inflation, ending in the recession of the early 1980s.

However, during the 1980s the Conservative government managed to arrest this decline and real GDP growth averaged 3.0% in that decade, one of the highest OECD rates, despite the slowdown at the end of the decade when the country was in recession again.

During the 1990s real GDP growth averaged 2.5% p.a. and exports remained strong. This trend continued into the 2000s, despite the global slowdown in 2001-02, the very serious outbreak of foot and mouth disease in February 2001, and the impact of the terrorist attacks in the US in September 2001 on air travel and tourism industries. GDP grew by 2.2% in 2003 and 3.1% in 2004, while inflation remained at under 2% p.a.

Interest rate policy was surrendered by the Treasury to the Bank of England in 1997 soon after Labour came to power.

Trade: Exports of goods and services account for 25% of GDP and manufactured exports for 78% of total merchandise exports (2003). Within the EU, all national quantitative trading restrictions have been abolished, although some EU-wide import quotas remain.

Principal exports are machinery, transport equipment, chemicals and manufactured goods, while principal imports are machinery, transport equipment, manufactured goods, chemicals and food. Main export partners are the US, Germany, France, the Netherlands, Ireland, Belgium/Luxembourg and Italy (the EU accounts for more than half of exports). Main import partners are Germany, the US, France, the Netherlands, Belgium/Luxembourg, Japan and Italy.

History

Great Britain, the dominant industrial and maritime power of the 19th century, played a leading role in developing parliamentary democracy and in advancing literature and science. At its zenith, the British Empire stretched over one-fourth of the earth's surface.

The first half of the 20th century saw the UK's strength seriously depleted in two World Wars. The second half witnessed the dismantling of the Empire and the UK rebuilding itself into a modern and prosperous European nation.

As one of five permanent members of the UN Security Council, a founding member of NATO, and of the Commonwealth, the UK pursues a global approach to foreign policy; it currently is weighing the degree of its integration with continental Europe. A member of the EU, it chose to remain outside the Economic and Monetary Union for the time being.

Constitutional reform is also a significant issue in the UK. The Scottish Parliament, the National Assembly for Wales, and the Northern Ireland Assembly were established in 1999, but the latter is suspended due to wrangling over the peace process.