Economic trends
The United Kingdom is the fifth global economy and the second in the EU. However, from April 2008, the country went into a deep recession. The Gross Domestic Product registered a sharp decline in 2009, mainly due to the international financial crisis that has affected the UK. In effect, the United Kingdom has a highly developed and diversified market economy, dominated by the tertiary sector. Company, banking and financial services, which were the first to be affected, are the country's primary activities.
The unemployment rate, one of the lowest in Europe, is rapidly increasing following the crisis. The British economy has to face important challenges: its recovery, the stabilization of its financial system, the modernization of public services (transport, education, public health, etc.) and the reform of its retirement system.
Main branches of industry
The Agricultural sector accounts for only 1% of the GDP, but is very productive. Main crops are potatoes, beetroot, wheat and barley. Livestock farming (especially sheep and cattle) continues to be a major agricultural activity, despite the crises of "mad cow" and "foot and mouth" diseases. The fishing sector is also well developed but is currently suffering from the depletion of fish volumes in the traditional fishing areas.
The United Kingdom has considerable mineral resources. Once the world's 10th biggest oil producer with huge natural gas reserves, its production is dropping fast. Nevertheless, groups like BP and Shell continue to be amongst the global leaders in the petroleum industry.
The secondary sector is not very competitive. The main activities are tool machinery, transport material and chemical products. The sectors with a good potential are information and communication technologies, bio-technology, aviation industry, renewable energies and defense.
The services sector is the driving force behind the economy. London is Europe's largest financial market place, on par with New York.
International trade
The United Kingdom is one of the most important performers in international trade. It is the world's second biggest exporter and the third biggest importer of commercial services, and the ninth biggest exporter and sixth biggest importer of goods. The United Kingdom's main trade partners are the European Union, the United States and China. In 2009, the United Kingdom showed a trade deficit, following a global drop in demand. This trend should continue in the coming years.
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