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

http://en.wikipedia.org/wiki/Economy_of_the_United_Kingdom

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

http://en.wikipedia.org/wiki/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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