Economy of the UK

Economy of the United Kingdom

Text 1

The United Kingdom has the sixth-largest national economy in the world (and third-largest in Europe) measured by nominal GDP and eighth-largest in the world (and second-largest in Europe) measured by purchasing power parity (PPP). The UK’s GDP per capita is the 22nd-highest in the world in nominal terms and 22nd-highest measured by PPP. In 2012, the UK was the 10th-largest exporter in the world and the sixth-largest importer. In 2012, the UK had the third-largest stock of inward foreign direct investment and the second-largest stock of outward foreign direct investment. The British economy comprises (in descending order of size) the economies of England, Scotland, Wales and Northern Ireland. The UK has one of the world’s most globalised economies. One-sixth of the tax revenue comes from VAT (value added tax) from the consumer market of the British Economy.

The service sector dominates the UK economy, contributing around 78% of GDP, with the financial services industry particularly important. London is the world’s largest financial centre alongside New York and has the largest city GDP in Europe. The UK aerospace industry is the second- or third-largest national aerospace industry depending on the method of measurement. The pharmaceutical industry plays an important role in the economy and the UK has the third-highest share of global pharmaceutical R&D. The automotive industry is also a major employer and exporter. The British economy is boosted by North Sea oil and gas production; its reserves were valued at an estimated £250 billion in 2007. There are significant regional variations in prosperity, with the South East of England and southern Scotland the richest areas per capita.


nominal GDP – номинальный ВВП

purchasing power parity (PPP) — паритет покупательной способности

nominal terms – номинальное выражение

inward foreign direct investment – иностранные капиталовложения внутри страны, прямые иностранные инвестиции внутри страны

outward foreign direct investment – капиталовложения за рубежом, прямые иностранные инвестиции за ребежом

tax revenue – налоговые поступления

VAT (value added tax) — НДС

consumer market – потребительский рынок

R&D (research and development) – Научно-исследовательские и опытно-конструкторские разработки


Find the English equivalents for the following words and expressions.

глобализированная экономика

фармацевтическая промышленность

на душу населения



крупнейший финансовый центр

в убывающей последовательности

включать в себя

Express the same in English.

Ведущим сектором британской экономики является сфера услуг. Лидирующее положение в ней занимает её финансовая составляющая.

Прямые иностранные инвестиции — наиболее востребованная форма капиталовложений для развивающихся экономик.

В зависимости от метода измерения, полученные результаты могут быть разными.

Во многих странах, в том числе и в России, экономика укрепляется за счет добычи нефти и газа.

Сфера услуг, транспорт, промышленное производство и сельское хозяйство являются основными отраслями экономики Соединенного Королевства.

Машиностроение и транспорт, промышленные товары и химикаты являются основными статьями экспорта Великобритании.

Find proper terms to the following definitions.

A rate of exchange between two currencies that gives them equal purchasing powers in their own economies.

A tax levied on the difference between the cost of materials and the selling price of a commodity or service.

The total value of all goods and services produced domestically by a nation during a year. It is equivalent to gross national product minus net investment incomes from foreign nations.

Text 2

In the 18th century the UK was the first country to industrialise and during the 19th century had a dominant role in the global economy. From the late-19th century the Second Industrial Revolution in the United States and Germany presented an increasing economic challenge, and the costs of fighting the First World War and Second World War further weakened the UK’s relative position. However it still maintains a significant role in the world economy, such as in financial services, and the knowledge economy. The UK economy is currently recovering from a recession arising from the financial crisis of 2007/08, and GDP remains 1.3% below its pre-recession peak as of Q4 2013; the UK experienced a deeper downturn than all of the G7 except Japan, and has experienced a slower recovery than all but Italy. The UK experienced the fastest growth in 2013 since 2007 and is now the fastest growing major European economy.

Government involvement in the British economy is primarily exercised by HM Treasury, headed by the Chancellor of the Exchequer, and the Department for Business, Innovation and Skills. Since 1979 management of the UK economy has followed a broadly laissez-faire approach. The Bank of England is the UK’s central bank and its Monetary Policy Committee is responsible for setting interest rates. The currency of the UK is the pound sterling, which is also the world’s third-largest reserve currency after the U.S. dollar and the euro. The UK is a member of the Commonwealth of Nations, the European Union, the G7, the G8, the G20, the International Monetary Fund, the Organisation for Economic Co-operation and Development, the World Bank, the World Trade Organisation and the United Nations.


global economy – глобальная экономика

challenge – сложная задача

to weaken — ослабить

downturn – спад

laissez-faire — либеральный стиль руководства

to set – устанавливать

interest rates – процентные ставки

reserve currency — резервная валюта

International Monetary Fund – Международный валютный фонд

Worla Trade Organisation – Всемирная торговая организация


Find proper terms to the following definitions.

A drop or reduction in the success of a business or economy.

The official name for the standard monetary unit of the United Kingdom.

An international cooperative organization established in 1945 to assist economic development, especially of backward nations, by the advance of loans guaranteed by member governments.

Covering, influencing, or relating to the whole world.

An international body concerned with promoting and regulating trade between its member states.

The transition to new manufacturing processes in the period from about 1760 to sometime between 1820 and 1840. This transition included going from hand production methods to machines, new chemical manufacturing and iron production processes, improved efficiency of water power, the increasing use of steam power and the development of machine tools.

A metal or paper medium of exchange that is in current use in a particular country.

A temporary depression in economic activity or prosperity.

Complete the sentences.

In 1997 the government restored the authority to set … to the Bank of England.

… is the economy, which is based on economies of all of the world’s countries’ national economies.

… has a monopoly on the issue of banknotes in England and Wales and regulates the issue of banknotes by commercial banks in Scotland and Northern Ireland.

The U.S. dollar, the UK pound sterling and the euro are the main … in the world.