U.K. is the largest national economy in the world (3rd largest in Europe) measured by nominal GDP and 8th largest in the world (2nd largest in Europe) by purchasing power parity. In 2012, U.K. was the 10th largest exporter in the world and 6th largest importer. It is thus one of the world’s most globalised economies.
In the 18th century, the U.K. was the first country to industrialize and during the 19th century had a dominant role in the global economy. The U.K. economy is currently recovering from a recession arising from the financial crisis of 2007/08.
In 2013, the U.K. experienced its fastest growth since 2007 and is currently the fastest growing major developed economy. It has been forecast that the U.K. will become the world’s 5th largest economy by 2016.
The Bank of England is U.K.’s central bank and its Monetary Policy Committee is responsible for setting interest rates. Currency is the pound sterling, which is the world’s 3rd largest reserve currency after the U.S dollar and the Euro.
The U.K. is member of the Commonwealth, the European Union, the G7, G8, G20, International Monetary Fund, the World Bank, and the United Nations among others.
The taxation to the local and central government are also contributing factors. The local government is financed by grants, business rates, council tax, fees and charges (on-street parking).
The Central government through income tax, value added tax, corporation tax and fuel duty. Sectors such as the Agricultural sector have added gross value of £9, 438 million to the economy in 2011.
The economy has seen both good times and bad and in the end has survived it all.