The United Kingdom may be small – it’s the 80th largest country – but it has a significant impact on the world economy. Indeed, it has the 5th largest GDP. The issues surrounding Brexit and the uncertainty about the ripples generated by the departure could hit the world economy hard, causing many world leaders to express their concern. Here are some interesting facts about the UK economy that you may not be aware of.
It’s true to say that the UK is not known as an oil company. Despite this, crude oil was the third biggest export through 2018. The total worth of this export reached $17.8 billion. Furthermore, the CIA’s World Facebook states that the UK is still the 21st largest producer for crude oil.
In 2016, it was producing approximately 933,000 barrels every day.
Those looking for the negative impact of Brexit only need to explore the falling value of the pound. Indeed, the pound sterling has dropped 14% against the US dollar since the referendum that took place in 2016. While the British currency has rebounded several times, according to the BBC, UK households have lost approximately £900, mainly due to the level of uncertainty around proceedings.
Everyone remembers the 2008 recession and according to experts, it’s possible that a no-deal Brexit would have caused the GP to plunge by 8%. Economists also suggest that the unemployment level could have risen by 8% too. While Britain has now effectively left with a deal, there are still various details that need to be ironed out over the next two years.
Members of the 1% are among the richest individuals in the world and they seem to love the UK. According to the latest stats, the UK was home to 145 billionaires in 2018. While that may seem like a small number, that means the UK has the fifth-highest number of billionaires. This is despite the fact that it only has the 21st highest population. Essential, it means that one in every 462,000 people in Britain is a billionaire. This is close to the same rate as the level of billionaires in America.
You might be wondering who has a more lavish place of residence, the Queen or the Present of the United States? According to a report from Architectural Digest, Buckingham Palace is the most expensive home in the world. It’s valued at $1.55 billion. That’s not surprising, particularly when you consider that the royal family is believed to have a net worth of $1 trillion. This is close to the Saudi Arabia’s House of Aud Monarchs.
You may have heard about celebrities buying their own private islands. Well, if you decided that you wanted to invest in your own island, the UK might be the perfect place to start looking. An island off the coast of Shetland is available now and on sale for less than you might imagine. The Island of Linga is available for just $351,000. While there are no complete structures or buildings, a buyer would have a land permit and a loch. There are two stone cottages, but these have no roofs so there is work to be done before you could call this place home.
According to reports, it is the 5th largest employer in the world. Free healthcare is available to all residents in the UK so it’s not surprising that the business provides a lot of jobs. Indeed, according to Forbes, there are over 1.5 million employees working for the NHS.
There is a 20% sales tax for most of the goods and services available from the UK. It’s worth noting that this is significantly more than the 10% tax that you would need to pay at a UK store. The difference is that in the UK the cost must be included in the price. This is not a requirement for the US.
Despite the high mark, Britain’s VAT does not hold the title as the world’s most expensive sales tax. There are various countries including Sweden, Croatia, and Denmark where VAT is closer to 25%. India’s sale Tax is even larger at 28%.
We hope you find these facts fascinating. It will be interesting to see how Brexit impacts the UK economy over the next few years.