How on earth can a country with the world’s 80th largest land area and the world’s 21st largest population have the world’s fifth-largest economy, with a GDP of roughly 3.1 trillion dollars?
The United Kingdom has the world’s fifth-largest GDP, surpassing India, which has a population 20 times larger and a land area 13 times larger.
So how is this relatively small country so stinking wealthy? We’ll find out all about it in this article. Let’s start with some brief financial facts so we have a point of reference and a baseline for assessing the UK’s wealth.
The United Kingdom is made up of four different countries. Northern Ireland, England, Scotland, and Wales Great Britain is only the island component of the United Kingdom, therefore it excludes Northern Ireland.
It has a GDP of 3.1 trillion dollars, a GDP per capita of just over 46 thousand dollars, and an average wage of 41 thousand dollars. It exports items worth $837 billion USD.
The average property price in the United Kingdom is $367,500, however, the average house price in London is $705,000.
I’ve always thought that, aside from London, the UK lacks any truly expansive megacities. Sure, Birmingham and Manchester are large cities,
but they’re nothing compared to China, the United States, or India, which all have several megacities with gigantic skyscrapers.
What are the GDP Figures?
The United Kingdom has a diverse range of industries, including banking and business services. Retail, food and beverage, and entertainment are all consumer-oriented enterprises.
Manufacturing and output account for less than 21% of overall GDP, while agriculture accounts for only 0.6 percent.
First, let’s take a closer look at GDP or gross domestic product. This is a measure of how much a country produces and how big its economy is.
Production equals income because everything created and sold is paid for, and those payments end up in someone’s wallet, whether through wages, rents, stock returns, or pensions.
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The United States is by far the largest economy in terms of GDP, accounting for about a quarter of world output.
The UK’s GDP is around three trillion pounds, which ranks it fifth in the world and accounts for about 3.3 percent of global output, making it a very important global economy.
China is the second-largest economy, with around 13 trillion pounds and rising, accounting for around 15 or 16 percent of global output.
The UK is Actually Business Friendly
Independent central banks, contract law, political checks and balances, bankruptcy laws, the welfare state, and compulsory schooling all benefit the economy by promoting a stable business climate and growing human capital, which includes skills and innovation.
People invest because they know their money will not be stolen by the government. The United Kingdom scores highly on the World Bank’s Doing Business report, which measures how business-friendly a country’s regulations are.
It’s a flawed index, but it can be used as a snapshot here to show that the United Kingdom values business and economic growth because of historically accumulated capital and skills.
The United Kingdom has a large production capacity, strong innovation potential, and low costs, all of which help it compete.
Final Conclusion on How is the United Kingdom So Rich
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