UK is the sixth largest economy in the world and it has decided to leave the European union after the conduct of referendum in 2016. According to Heritage foundation economic freedom index, UK stands 7 in overall economic freedom indicators among the 180 countries and political entities ranked. Its population as of 2020 is around 66.8 million and its Gross Domestic Product is cash terms is 2.214 Trillion British pounds in 2019. Its per capita GDP is around 48,725 US dollars. The General Government spending is around 41% of its GDP. UK spends 26,320 US dollars per student in education spending. UK spends 20.6 percent of its GDP on social services. Permanent immigrant inflows is around 350,000.
For Centuries UK is Innovation hub of the world
UK is innovation hub of the world. It is ranked fifth on the Global Innovation Index 2019. UK spend 1.7 percent of its GDP on research and development. Annual average wages in the UK is around 47,000 US dollars. almost all of its citizens have access to internet and mobile broadband. Life expectancy at birth is around 79 years. On an annual basis, UK spends 4600 US dollars on health related expenses for its citizens. Trade in goods and services is stood around 31 percent of its GDP.
UK is an Island Economy
UK is an island economy and its market economy is fairly open to trade around the world. UK experiences very stable financial and economic environment. It has very low inflation rate and interest rate. The long term interest rate is around 0.3percent. It has shown high level of financial inclusion and its financial services industry is very efficient and innovative.
UK is the Global Investment Hub
Global investors have high level of confidence on the UK’s rule of law as depicted by robust property laws, judicial effectiveness and government integrity. Overall tax burden is 33.3 percent of its total domestic income. In the last three years ending 2019, the Budget deficit is around 2.1 percent of its GDP. UK observed high level of business freedom, labor freedom and monetary freedom. Market intervention is very limited and widely discussed before the public. UK observed high level of open market economy.
UK has a very robust social system
UK economy is very open, transparent and its public policies are widely debated in public institutions. Its accounting framework, along with high level of technological infrasture and legal systems enables a transparent business environment. It gives very stable financial and economic sytems to support its widely participated markets. Ninety percent of its businesses are entrepreneurial in nature and the size of businesses are small ranging from one person to 10 person company. It has a very strong community of professional people to provide business support to small and medium entreprizes. UK observed strong professional participations through trade bodies, registers, and associations.
UK has a robust Governance system
The UK has a world-class intellectual property regime to protect innovative ideas. Four of the world’s top ten universities belong to Cambridge, Oxford and London and is rated second in the world for the quality of those universities on the Global Talent Competitiveness Index (GTCI). Global companies have invested half of all research and development business expenditure in the UK. In an attempt to compound the rate of innovation, the UK Government has created the Global Entrepreneur Programme (GEP) to encourage promising entrepreneurs to nurture their SMEs from the UK.