The UK Economy

It never ceases to amaze me just how many sectors and industries chose to centre their business deals in London.

I’m going to list just a few of those that I stumbled upon randomly by talking to a few different people:

  • Buying and selling world cargo (trading the cargo of ships floating on the seas around the world)
  • Maritime deals due to the well-established maritime law in the UK
  • Buying and selling properties anywhere in the world (eg. as a foreign investor if you buy a property for example in India, you are most likely to sign the deal in London due to the stable UK legal system)

And, I’m not listing the obvious ones: stock market, banking, digital, education, science, fashion, music, film, news, publishing…the list goes on.

So I decided to do a bit of research to find out how the UK actually makes money.

It turns out that 80% of all UK GDP comes from Services:

80% of UK economy are services

At the same time, the UK has the 2nd largest debt in the world ($9.5 trillion) which represents 560% of its GDP ($1.95 trillion).

UK external debt

That makes it the 3rd worst performer in the world after Luxembourg and Iceland in terms of debt.

List of countries by external debt

You’re puzzled, I’m puzzled.

(Wikipedia data is available only for 2014 – this pre-dates the Conservative Party pledge to reduce the debt to 0 although now abandoned since the Brexit result. I’m eagerly awaiting to see how the data will change once the latest figures come in.)


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