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United Kingdom
Chamber of Commerce Country Factsheet Last update: 27.01.2021

Your advisors at the Chamber of Commerce

  • Christophe Brighi
    +352423939321
  • Diana Rutledge
    +352423939338
  • Edith Stein
    +352423939482
Contact us: unitedkingdom@cc.lu

Key Indicators

Area
243,610 km2
Population
65,648,100 (July 2017 est.)
Government type
constitutional monarchy and Commonwealth realm
Languages
English
GDP
$2.88 trillion (2017 est.)
Growth rate
1.7% (2017 est.)
HDI
16
Capital
London

 

Introduction

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.

Source: The CIA World Factbook - United Kingdom

 

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 descriptor20182019202020212022
Gross domestic product, constant prices
Percent change
1.3981.2351.4481.5431.502
Gross domestic product, current prices
U.S. dollars (Billions)
2,828.8332,743.5862,716.5342,806.2432,911.119
Gross domestic product per capita, current prices
U.S. dollars (Units)
42,579.81741,030.23240,391.83941,504.88942,842.465
Inflation, average consumer prices
Percent change
2.4781.8081.9442.0002.000
Volume of imports of goods and services
Percent change
0.6600.3790.8631.8251.831
Volume of exports of goods and services
Percent change
0.1160.4250.1601.6261.881
Unemployment rate
Percent of total labor force
4.0753.8143.8454.0384.135
Current account balance
U.S. dollars (Billions)
-109.059-94.720-99.552-104.540-107.354
Current account balance
Percent of GDP
-3.855-3.452-3.665-3.725-3.688
Colored cells are estimates

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 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

Source: Administration des contributions directes

 

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: Mr Jean OLINGER

27, Wilton Crescent
GB-London SWIX 8SD
Tel: (+44) 20 7235 69 61/62/63
Fax: (+44) 20 7235 97 34
Email: londres.amb@mae.etat.lu

 

Honorary Consul

Honorary Consul of Luxembourg to Scotland: Mr Peter HILLIER

18 Charlotte Square
Edinburgh EH2 4DF
Tel. (+44) 131 270 3004
Email: peter.hillier(at)cazenovecapital.com

Honorary Consul of Luxembourg to Ireland: Mr Ivan HEALY

30 Upper Pembroke Street
DUBLIN
DO2 NT28
Tel: (+353) 01 608 7765
Fax: (+353) 01 234 2400
Email: ivanhealy(at)luxembourgconsulate.ie

Honorary Consul of Luxembourg to Iceland: Mr Bjarni MARKUSSON

Furulundi 1
IS-210 Gardabaer
Tel.: (+354) 414 6802 / (+354) 618 2938
Email: bjarnimark(at)simnet.is  

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

Other Useful Links:

 

The Chamber of Commerce and the country

Past events