Chamber of Commerce Country Factsheet Last update: 11.08.2017
Your advisors at the Chamber of Commerce
- Diana Rutledge+352423939335
- Edith Stein+352423939482
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 withdraw 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, a founding member of NATO, and of the Commonwealth, the UK pursues a global approach to foreign policy. The UK is also an active member of the EU, although it chose to remain outside the Economic and Monetary Union. The Scottish Parliament, the National Assembly for Wales, and the Northern Ireland Assembly were established in 1999. The latter was suspended until May 2007 due to wrangling over the peace process, but devolution was fully completed in March 2010.
The UK was an active member of the EU from 1973 to 2016, although it chose to remain outside the Economic and Monetary Union. However, frustrated by a remote bureaucracy in Brussels and massive migration into the country, UK citizens on 23 June 2016 narrowly voted to leave the EU. The so-called “Brexit” will take years to carry out but could be the signal for referenda in other EU countries where skepticism of EU membership benefits is strong.
The economy is projected to slow in 2017 and 2018, owing to uncertainty about the outcome of the Brexit negotiations. This projection assumes that the United Kingdom's external trade will operate on a most favoured nation basis from April 2019. The uncertainty, and the assumed outcome, is projected to undermine spending, in particular investment. Policies have supported private confidence and consumption, but household spending is projected to ease as the combination of a weakening labour market and higher inflation reduces real wage growth. The current account deficit has narrowed and exports should support growth, stimulated by improved competitiveness.
Inflation has exceeded the target of 2% reflecting the recent exchange rate depreciation. The Bank of England is projected to look through this transitory effect and maintain its supportive policy stance. The budget deficit is projected to remain broadly unchanged this year, but fiscal consolidation is planned for 2018 despite a weaker growth outlook. Instead, further fiscal initiatives to increase public investment should be considered to support demand in the near term and boost supply in the longer term.
The United Kingdom faces a long-standing decline in its export market share. Its less affluent regions, which mainly export manufacturing and agricultural products, are exposed to the risk of global protectionism, which could lower incomes and raise inequality. Enhancing regional and urban transport links would increase firms’ access to the best technologies and lower export costs, improving their ability to tap new markets and suppliers. Relaxing regulations to lift housing supply, promoting educational attainment and fostering lifelong learning would boost regional labour mobility and improve job prospects for displaced workers.
Source: OECD - Economic Forecast
Subject descriptor 2014 2015 2016 2017 2018 Gross domestic product, constant prices 3.070 2.245 1.837 1.051 1.651 Gross domestic product, current prices 3,002.394 2,858.482 2,649.893 2,609.912 2,709.190 Gross domestic product per capita, current prices 46,478.840 43,902.351 40,411.714 39,526.196 40,747.775 Inflation, average consumer prices 1.472 0.050 0.743 2.506 2.600 Volume of imports of goods and services 2.534 5.845 2.614 -2.234 1.000 Volume of exports of goods and services 1.455 4.797 2.496 1.396 2.000 Unemployment rate 6.200 5.400 4.962 5.201 5.448 Current account balance -140.028 -153.295 -157.253 -112.264 -105.276 Current account balance -4.664 -5.363 -5.934 -4.301 -3.886
Source: IMF Statistics - United Kingdom
Luxembourg and the country
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, p. 107 )
- Effective as of 07.03.1968 (Memorial 1968, A, p. 590)
- Exchange of Letters dated 07/03/1968 (Memorial 1968, A, p. 589 and ff.)
- Amendment to the Convention from 18.07.1978 (Memorial 1980, A, p. 382 )
- Effective as of 05.21.1980 (Memorial 1980, A, p. 904)
- Second Amendment to the Convention from 28.1.1983 (1983 Memorial,
A, p. 2226 )
- Effective as of 19.03.1984 (Memorial 1984, A, p. 366)
- Third Amendment to the Convention and Exchange of letters from 02.07.2009
- Act from 31.3.2010 (Memorial 2010, A, no. 51, p. 830 et )
- Effective as of 15.4.2010 (Memorial 2010, A, no. 97, p. 1797)
Air Services agreement
- Exchange of Notes from 24/27.5.1948
- Effective as of 27.5.1948
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
Mr Jean OLINGER
27, Wilton Crescent
GB-London SWIX 8SD
Tel: +44 20 7235 69 61/62/63
Fax: +44 20 7235 97 34
Honorary Consul of Luxembourg to Scotland:
Mr John HILLIEREdinburgh Quay
Edinburgh EH3 9QG
Tel. +44 131 270 3001
Honorary Consul of Luxembourg to Ireland:
Mr Noel KIERANSSuite 30
The Mall Beacon
Tel: +353 1 29 34 980
Fax: +353 1 29 34 972
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.
Other Useful Links:
- CIA World Factbook on United Kingdom
- Doing Business in the UK
- Le Royaume-Uni sur le site de l'AWEX
- Das ist Großbritannien
- Présentation du Royaume-Uni par trésor
The Chamber of Commerce and the country
- 11.04.2016 - 12.04.2016