The economy of Great Britain.

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Economy of Kazakhstan Great Britain is one of the world's leading industrialized nations. It has achieved this position despite the lack of most raw materials needed for industry. Great Britain also must import about 40% of its food supplies. Thus the country's prosperity is heavily dependent upon the export of manufactured goods in exchange for raw materials and foodstuffs. The per capita national income in 1991 was $15,900. In the early 1990s, manufacturing industries accounted for about a quarter of the gross domestic product, followed by financial industries, trade, transportation and communications, services, construction, mining and public utilities, and agriculture. Service industries employed about 60% of the workforce, while manufacturing accounted for just over 25%.

Within the manufacturing sector itself, the largest industries include machine tools; electric power, automation, and railroad equipment; ships; motor vehicles and parts; aircraft; electronic and communications equipment; metals; chemicals; petroleum; coal; food processing; paper and printing; textile; and clothing. During the 1970s and 80s, nearly 3.5 million manufacturing jobs were lost. However, over 3.5 million jobs were created in service-related industries. This trend reflects a shift in Great Britain's economic base, which has benefited the southeast, southwest, and Midlands regions of Great Britain. Other areas, such as northern England and Northern Ireland have been hard hit by the changing economy. In the mid and late 1980s, the overall economy grew and unemployment decreased, but economic conditions again worsened in the early 1990s, with unemployment rising to 9.4% by 1992. 

The country's chief exports are manufactured goods, machinery, fuels, chemicals, semifinished goods, and transport equipment. The chief imports are manufactured goods, machinery, semifinished and consumer goods, and foodstuffs. Since the early 1970s Great Britain's trade focus has shifted from the United States to the European Community, which now accounts for over 50% of Britain's trade. In addition, Commonwealth nations account for 11% of Great Britain's trade. Germany, the United States, France, and the Netherlands are Britain's main export markets. The country accounts for 6% of the world's total exports.

The main industrial and commercial areas of Great Britain are the great conurbations, where about one third of the country's population lives. The administrative and financial centre and most important port is Greater London, which also has various manufacturing industries. London remains an important international financial centre, and is now Europe's foremost financial city. Metal goods, vehicles, aircraft, synthetic fibers, and electronic equipment are made in the West Midlands conurbation, which with the addition of Coventry roughly corresponds to the metropolitan county of West Midlands. The Black Country and the city of Birmingham are in the West Midlands. Greater Manchester has cotton and synthetic textiles, coal, and chemical industries and is transportation and warehousing centre. Liverpool, Britain's second port, along with Southport and Saint Helens are in Merseyside County. West Yorkshire County includes Leeds and Bradford and is Britain's main centre of woollen, worsted, and other textile production. Tyne and Wear county, with Newcastle upon Tyne as its centre and Durham as a main city, has coal mines and steel, electrical engineering, chemical, and shipbuilding and repair industries

The South Wales conurbation, with the ports of Swansea, Cardiff, and Newport (respectively in the counties of West Glamorgan, South Glamorgan, and Gwent), was traditionally a centre of coal mining and steel manufacturing, industries that have declined sharply in many parts of the region. Current important industries include oil refining, metals production (lead, zinc, nickel, aluminium), synthetic fibers, and electronics. In Scotland, the Strathclyde region, including Glasgow, is noted for shipbuilding, marine engineering, and printing as well as textile, food, and chemicals production. The Belfast area in Northern Ireland is a shipbuilding, textile, and food products centre.

Great Britain has abundant supplies of coal, oil, and natural gas. Production of oil from offshore wells in the North Sea began in 1975, and by the end of the 1970s the country was self-sufficient in petroleum. Great Britain's other mineral resources include iron ore, tin, limestone, salt, china clay, oil shale, gypsum, and lead.

In the mid-1970s the nation extended its fishing limits to 200 mi (518 km) offshore. Cod, haddock, mackerel, whiting, trout, salmon, and shellfish make up the bulk of the catch.

Almost 30% of Britain's land is arable, and almost half is suitable for meadows and pastures. Its agriculture is highly mechanized and extremely productive, with some of the highest crop yields of grains, sugar beets, fruits, and vegetables. The widespread dairy industry makes the country self-sufficient in milk, and nearly all the eggs needed are also home-produced. Beef cattle, large numbers of sheep, poultry, and pigs are raised in large numbers throughout much of the country. Barley, potatoes, rapeseed, and wheat are the main cereal crops. 

The coal, gas, electricity, railroad, and aviation industries and most of the steel industries, which were mainly publicly owned until the late 1970s, have undergone a process of privatization that began with the Thatcher government.

General overview: The UK, a leading trading power and financial centre, deploys an essentially capitalistic economy, one of the quartet of trillion dollar economies of Western Europe. Over the past two decades the government has greatly reduced public ownership and contained the growth of social welfare programs. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs with only 1% of the labour force. The UK has large coal, natural gas, and oil reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial nation. Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. The economy has grown steadily, at just above or below 3%, for the last several years. The BLAIR government has put off the question of participation in the euro system until after the next election; Chancellor of the Exchequer BROWN has identified some key economic tests to determine whether the UK should join the common currency system, but it will largely be a political decision. A serious short-term problem was foot-and-mouth disease, which by early 2001 had broken out in nearly 600 farms and slaughterhouses and had resulted in the killing of 400,000 animals. 

 industry: 24.9%

 services: 73.4% (1999)

 Population below poverty line: 17%

 Labor force: 29.2 million (1999)

 Labor force - by occupation: agriculture 1%, industry 19%, services 80% (1996 est.)

 Unemployment rate: 5.5% (2000 est.)

 Industries: machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing, and other consumer goods

 Industrial production growth rate: 2% (2000)

 Electricity - production: 342.771 billion kWh (1999)

 Economic aid - donor: ODA, $3.4 billion (1997)

 Currency: British pound (GBP)

 Currency code: GBP

 Average exchange rates: British pounds per US dollar - 0.6764 (January 2001), 0.6596 (2000), 0.6180 (1999), 0.6037 (1998), 0.6106 (1997), 0.6403 (1996)

 Fiscal year: 1 April - 31 March

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Questions:

1. What is the economy of Great Britain mostly based on?

2. What manufacturing is less developed in Britain?

3. What makes the country self-sufficient in energy?

4. What were the years of economical growth in Britain?

5. What does the government do to keep the economy at highlevel?

6. Why is Great Britain a good place for investments?

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