The British economy is a very developed business-oriented and commercial economy. It is the third-largest national economy in the whole of the developed world measured by economic output, tenth-largest by buying power, and third by GDP per person, making it the second most powerful economy in Europe after the United States. It is one of the four major advanced economies in the eurozone, second only to the US. Britain has been a major world political player since the nineteenth century, when its industrial, commercial, and technological superiority first made it a world economic leader.
Britain is a leading creditor of the eurozone. Although not as wealthy as Germany, it has long been considered a leading creditor of the European Central Bank. This position has encouraged the country to develop a large public sector that offers extensive public services, including many of the functions that used to be performed by private businesses, such as health care. Public ownership of many important assets has also been promoted, especially in the banking sector, which has helped to make the UK a strong financial player internationally, as well as being one of the leading investors in other countries.
The British economy is built on a complex set of interlocking economic factors. They include: (I) a large and highly developed financial and commercial sector that provides a solid base for the entire economy; (ii) a large and dynamic export sector; (iii) a flexible, high-value service sector that includes high-skilled jobs in finance, information technology, pharmaceuticals, and IT; (iv) an innovative, high-skilled and highly-functional service sector, including the financial, transportation, telecommunications and information sectors. In addition, the government plays a vital role in shaping and supporting the economy through taxation and regulation. It also plays a major role in housing and other economic activities through policy-making. The role of the central bank in the structure of the economy is also vital to the overall functioning of the British economy. The government manages the major financial and commercial institutions of the country and provides credit and money to its citizens.
Many economic commentators regard the British economy as a "meritocratic" system, in which the government, the banks, and the high-skilled services industries provide key skills and expertise to people from disadvantaged families. There are many top-paying occupations in the British economy, including those in financial institutions, law firms, and medicine, publishing, science and technology, media, engineering, business, education, architecture, publishing, architecture and catering, construction, etc.
The British economy is a diversified and diverse economic system that has developed over the years. Its industrial base is based on two main pillars: manufacturing and services.
Manufacturing involves goods production and distribution that produce consumer goods and finished goods. Services involve the provision of services such as finance, insurance, administration, sales, information technology, transport, and other business-to-business activities. The manufacturing sector is the backbone of the British economy, with the three sectors described above accounting for around ninety percent of all British economic activity. The service sector, which includes the services that are delivered for other businesses, such as finance, insurance, and the management of small businesses, accounts for about five percent of total gross domestic product.
The services sector accounts for around forty percent of total economic activity, with the remaining being the consumer goods and investment sectors. The services sector also includes the financial, legal, retailing, and other services sectors. One of the major sources of income in the UK economy is tourism. Although the services sector provides employment opportunities for the UK is a very heavily taxed industry, it also generates substantial tax revenues.
There are some countries in Europe that are similar to the UK in economic structure, such as Germany, France, Italy, Spain, and Portugal. However, the overall size of the UK economy is much larger than those of these countries, as a large part of the UK's economy is based on the manufacturing and services sectors.