The Economy of the United Kingdom

Vocabulary flashcards covering key terms from the video notes on the UK economy, including sectors, Brexit, labor market, and trade.

Services Sector

Backbone of the UK economy; about 80% of GDP; includes finance, insurance, business services, education, and healthcare; London is a global financial hub.

GDP

Gross Domestic Product; total value of all goods and services produced in an economy.

London Stock Exchange

Major UK stock exchange based in London; a key component of the country’s financial markets.

Manufacturing

Sector whose share has declined but remains important in aerospace, automotive, and pharmaceuticals (e.g., Rolls-Royce, Jaguar Land Rover, GlaxoSmithKline).

Agriculture

Small sector (about 1–2% of GDP) but vital for food production and rural employment (livestock, dairy, cereals).

Brexit

UK’s departure from the EU; introduced trade barriers, immigration policy shifts, and regulatory changes; ongoing effects on trade and labor.

Inflation

Sustained rise in prices driven by energy costs, food prices, and global disruptions; affects purchasing power.

Cost of Living Crisis

Period when households face higher living costs due to inflation and price increases.

Bank of England

UK central bank; uses monetary policy, including interest rate changes, to manage inflation and financial stability.

Interest Rates

Policy rate used to influence inflation and economic growth; higher rates tend to cool inflation and slow growth.

Public Debt

Debt level that rose sharply during COVID-19 due to government support; managing debt while supporting recovery is a challenge.

Unemployment Rate

Typically around 4%; unemployment is generally low in the period described.

Labor Shortages

Gaps in workers in sectors like healthcare, agriculture, and hospitality, worsened post-Brexit due to reduced EU migration.

Gig Economy

Growth of freelance or part-time work; flexible employment patterns.

Remote Working

Shift toward working from home; changes traditional employment patterns and arrangements.

Levelling-Up

Government agenda to reduce regional economic disparities by improving infrastructure, education, and access to opportunities.

Trade Deals

New agreements with countries such as Japan, Australia, and the United States; EU trade remains important but more complex.

Tariffs/Customs Checks/Regulatory Changes

Post-Brexit trade barriers affecting EU trade, including tariffs, customs checks, and regulatory shifts.

Exports

UK exports include machinery, vehicles, pharmaceuticals, and financial services.

Green Technologies

Investment in renewable energy and sustainable tech to diversify the economy and support growth.