2.1- Main strengths and weaknesses of the UK's economy.

Main strengths of the UK's economy.

• A large and highly competitive economy. The Uk’s is a wealthy country. 

• A low unemployment rate

• Strong presence in the financial sector. 

• High value-added manufacturing sectors (aerospace, pharmaceuticals, automotive)

• The UK produces oil and gas in the North Sea. This is an asset for its energy security. 

Main strengths and weaknesses of the UK's economy.

• Service-dominated economy

• High public debt burden

• Weak economic growth

• Sluggish productivity

• Brexit trade barriers

Why is it mostly service based ?

• Service-dominated economy: Services account for about 80% of GDP, leading to a lack of economic diversification.

High public debt burden?

• High public debt burden: Debt reached roughly 100% of GDP following the pandemic, requiring massive market borrowing.

Why is there a weak economic growth

• Weak economic growth: Averages around 1.5% annually (2010–2020), with 1.3% in 2025 and 1% projected for 2026.

Why is the productivty sluggish ?

• Sluggish productivity: Low efficiency in translating input into economic output.

Why is the brexit trade barriers an obstacle ?

• Brexit trade barriers: Creates obstacles, higher costs for EU trade, and reduced investment.