United KingdomChapters
The United Kingdom has historically played a leading role in developing parliamentary democracy and in advancing literature and science. At its zenith in the 19th century, the British Empire stretched over one-fourth of the earth's surface. The first half of the 20th century saw the UK's strength seriously depleted in two world wars and the Irish Republic's withdrawal from the union. The second half witnessed the dismantling of the Empire and the UK rebuilding itself into a modern and prosperous European nation. As one of five permanent members of the UN Security Council and a founding member of NATO and the Commonwealth, the UK pursues a global approach to foreign policy. The Scottish Parliament, the National Assembly for Wales, and the Northern Ireland Assembly were established in 1998.
The UK has been an active member of the EU since its accession in 1973, although it chose to remain outside the Economic and Monetary Union. However, motivated in part by frustration at a remote bureaucracy in Brussels and massive migration into the country, UK citizens on 23 June 2016 narrowly voted to leave the EU. The UK and the EU are currently negotiating the terms of the UK's withdrawal and will discuss a framework for their future relationship ahead of the UK's scheduled departure from the bloc on 29 March 2019.
Key indicators
- Area
- 243,610 km2
- Population
- 67.081 million (June 2020 est.)
- Government type
- parliamentary constitutional monarchy; a Commonwealth realm
- Languages
- English
- GDP
- $2.708 trillion (2020 est.)
- Growth rate
- -9.8% (2020 est.)
- HDI
- 13
- Capital
- London
Macroeconomic indicators
The COVID-19 crisis has led to a severe economic contraction. GDP is projected to fall by 14% in 2020 if there is a second virus outbreak later in the year (the double-hit scenario). An equally likely single-hit scenario would still see GDP fall sharply by 11.5%. In the double-hit scenario, the unemployment rate is set to more than double to 10% and remain elevated throughout 2021, despite widespread use of furloughing. Measures to limit the effects of the crisis in that scenario would push the fiscal deficit up to at least 14% of GDP in 2020.
The government swiftly put in place a comprehensive economic support package. Fiscal measures include income support for workers and self-employed, around GBP 330 billion in state loan guarantees to keep firms in business, tax deferrals, and an improved dispute resolution mechanism as an alternative to bankruptcy. Moving forward, these measures should be kept in place as long as they are needed and fiscal policy should remain supportive. Higher unemployment benefits should be extended beyond the fiscal year 2020-21 to help support demand during the recovery. Given the economic disruption caused by COVID-19, a temporary extension of existing trading relationships with the EU beyond the end of 2020 would help reduce uncertainty. Public investment supporting the recovery should underpin progress in digitalisation, sustainability and inclusiveness.
Source: OECD - Economic Forecast
IMF Statistics:
| Subject descriptor | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
|
Gross domestic product, constant prices Percent change (Units) |
8.675 |
4.345 |
0.145 |
0.460 |
1.540 |
|
Gross domestic product, current prices Percent change (Billions) |
3,142.262 |
3,100.109 |
3,344.744 |
3,495.261 |
3,685.408 |
|
Gross domestic product per capita, current prices Percent change (Units) |
46,704.465 |
45,730.102 |
49,098.977 |
51,074.793 |
53,627.266 |
|
Inflation, average consumer prices Percent change (Units) |
2.588 |
9.067 |
7.306 |
2.453 |
2.010 |
|
Volume of imports of goods and services Percent change (Units) |
6.142 |
14.608 |
-1.635 |
-0.740 |
-0.175 |
|
Volume of exports of goods and services Percent change (Units) |
4.941 |
8.970 |
-1.360 |
-1.161 |
0.717 |
|
Unemployment rate Percent change (Units) |
4.625 |
3.875 |
4.025 |
4.150 |
4.050 |
|
Current account balance Percent change (Billions) |
-14.865 |
-95.513 |
-73.489 |
-90.733 |
-103.721 |
|
Current account balance Percent change (Units) |
-0.473 |
-3.081 |
-2.197 |
-2.596 |
-2.814 |
Estimates
Source: IMF Statistics - United Kingdom
Relationships with Luxembourg
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 24.05.1967 (Memorial 1968, A No.8, p.108)
- Effective as of 01.01.1966 (Memorial 1968, A No.8, p.108)
- Amendment to the Convention from 18.07.1978 (Memorial 1980, A No.22, p.382)
- Effective as of 06.04.1975 (Memorial 1980, A No.22, p.382)
- 2nd Amendment to the Convention from 28.01.1983 (Memorial 1983, A No.104, p.2226)
- Effective as of 01.01.1984 (Memorial 1983, A No.104, p.2226)
- 3rd Amendment to the Convention from 02.07.2009 (Memorial 2010, A No.51, p.830)
- Effective as of 01.01.2011 (Memorial 2010, A No.51, p.830)
Air Services agreement
- - Exchange of Notes from 24/27.05.1948
- - Effective as of 27.05.1948
Further information
Foreign Trade
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact points in United Kindom
Embassy of the Grand Duchy of Luxembourg in United Kingdom
Ambassador with residence in London: Mr Jean OLINGER
27, Wilton Crescent
GB-London SWIX 8SD
United Kingdom
Tel.: (+44 -20) 7235 69 61; (+44 -20) 7235 69 62; (+44 -20) 7235 69 63
Fax: (+44 -20) 7235 97 34
E-Mail: londres.amb@mae.etat.lu
Website: londres.mae.lu
Honorary Consul
Honorary Consul with jurisdiction over Scotland:
Mr Peter HILLIER
Edinbourg Quay
133 Fountainbridge
EH3 9QG Edinburgh
Scotland
Tel.: (+44) 131 270 3001
E-Mail: peter.hillier@cazenovecapital.com
Source: Embassy of Luxembourg in London
Country risk as defined by Office du Ducroire for United Kingdom
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Link: Country risk classification - OECD
