1. General Survey

The economy of the United Kingdom is the sixth-largest national economy in the world measured by nominal GDP¹and seventh-largest measured by purchasing power parity （PPP）, and the third-largest in Europe measured by nominal GDP （after Germany and France） and second-largest measured by PPP （after Germany）. The U.K.’s GDP per capita is the 22nd highest in the world in nominal terms and the 17th highest measured by PPP. The British economy comprises （in descending order of size） the economies of the countries of England, Scotland, Wales and Northern Ireland.

In the 18th century the U.K. was the first country in the world to industrialize, and during the 19th century possessed a dominant role in the global economy. From the late 19th centurythe Second Industrial Revolution in the United States and the German Empire presented an increasing challenge to Britain’s role as leader of the global economy. Despite victory, the costs of fighting both the First World War and Second World War further weakened the relative economic position of the U.K., and by 1945 Britain had been superseded by the United States as the world’s dominant economic power. However, the U.K. still maintains a significant role in the world economy.

The U.K. is one of the world’s most globalized countries. London is the world’s largest financial center alongside New York and has the largest city GDP in Europe. As of December 2010 the U.K. had the third-largest stock of both inward and outward foreign direct investment（in each case after the United States and France）. The aerospace industry of the U.K. is the second or third-largest national aerospace industry, depending upon the method of measurement. The pharmaceutical industry plays an important role in the U.K. economy and the country has the third-highest share of global pharmaceutical R＆D （research and development） expenditures （after the United States and Japan）. The British economy is boosted by North Sea oil and gas reserves, valued at an estimated £250 billion in 2007. The U.K. is currently ranked seventh in the world （and third in Europe） in the World Bank’s Ease of Doing Business Index.

The U.K. is a member of the Commonwealth of Nations, the European Union, the G7, the G8, the G20, the International Monetary Fund, the Organization for Economic Co-operation and Development, the World Bank, the World Trade Organization and the United Nations.