United Kingdom profile

Demography and Health

The United Kingdom has a population of about 69.2 million people in 2024, placing it among the larger European economies. The country experiences a modest natural increase, with a crude birth rate of 10.0 per 1,000 people and a crude death rate of 9.52 per 1,000, alongside a substantial level of net inward migration—about 417,114 people in 2024—which supports population growth and aging dynamics typical of high-income economies. Life expectancy at birth is high, at 81.2 years (2023), underscoring favorable health outcomes and long-run living standards. The under-5 mortality rate is relatively low at 4.5 per 1,000 live births, reinforcing a profile of strong pediatric and maternal health outcomes. Health spending is substantial: current health expenditure accounts for 10.9% of GDP (2023), and per capita health expenditure at purchasing power parity (PPP) terms is about 5,357 international dollars (2022). The system is literate in human resources for health, with about 3.17 physicians per 1,000 people (2022) and 2.35 hospital beds per 1,000 people (2021). These indicators, together with high life expectancy and low under-nourishment (2.5% of the population, 2022), point to a high-income health system that emphasizes access and outcomes, albeit with ongoing pressures typical of advanced economies, such as aging populations and rising care needs. The country’s digital connectivity—nearly universal internet use—complements health information systems and remote care, though not directly captured in these demographic metrics. Overall, Demography and Health reflect stability and capability, with robust health spending and outcomes accompanying a large, migratory, aging population.

Economy

The United Kingdom reports a high GDP per capita of $52,637 (current US$) in 2024 and a GDP per capita PPP of $60,620, signaling a high standard of living and productive economy. The economy blends services-led growth with advanced manufacturing and a sizable knowledge economy, underlined by a strong research and development posture (R&D expenditure at 2.9% of GDP in 2021, ranking 11th) and a solid pipeline of innovation, as evidenced by 11,592 patent applications by residents in 2021 (ranked 9th). High-technology exports are substantial, totaling about $82.4 billion (2023), ranking 13th globally by that metric, indicating a meaningful export base in tech-intensive sectors. Inflation sits at 3.27% in 2024, modestly elevated relative to CPI targets but consistent with many advanced economies, while unemployment stands at 4.03% in 2023, suggesting a tight labor market overall. The country maintains a sizable military expenditure of about $74.94 billion in 2023, underscoring continued defense prioritization. Economic openness is evident in the export and import shares of GDP, with exports and imports of goods and services at roughly 30.6% and 31.8% of GDP in 2024, respectively. The current account balance is negative at about -2.65% of GDP (2024), indicating a modest external deficit despite robust private-sector dynamism. FDI inflows, measured as a share of GDP, are relatively modest at 0.096% (2024), suggesting limited net foreign investment relative to GDP by this indicator, though the United Kingdom remains a global financial hub with significant capital market activity. Net energy and environmental indicators, such as renewable energy consumption (12.2% of total final energy in 2021) and per-capita greenhouse gas emissions (5.54 t CO2e), reflect ongoing transitions and environmental considerations within a sophisticated, high-income economy. Overall, the Economy section presents the UK as a highly productive, innovation-driven economy with strong macro stability, outward-oriented trade, and ongoing structural adjustments characteristic of advanced economies.

Trade and Investment

Trade and investment dynamics show a highly open economy with a substantial role for international flows. Exports of goods and services account for 30.6% of GDP in 2024, while imports of goods and services constitute 31.8% of GDP, signaling a high level of integration with global supply chains. The logistics backbone appears robust, with a Logistics Performance Index (Quality of trade and transport-related infrastructure) of 3.7 (2022), placing the UK among the higher performers globally (ranked 9). This supports efficient trade, just-in-time manufacturing, and services logistics—critical for a services-heavy economy. Foreign direct investment, net inflows, amount to 0.096% of GDP (2024), a relatively modest share by some standards but consistent with the country’s mature, well-regulated market and deep financial markets, which attract capital through channels beyond direct FDI inflows alone. From a capacity standpoint, high-technology exports—an indicator of advanced manufacturing and innovation ecosystems—are substantial, at about $82.4 billion (2023), reinforcing the role of technology and knowledge-intensive sectors in export performance. Intellectual property activity also underscores innovation strength, with residents filing 11,592 patent applications in 2021 (rank 9). These indicators point to a trade-and-investment environment that leverages advanced capabilities, supports high-value exports, and relies on a well-developed institutional and regulatory framework to maintain competitiveness. Despite a healthy innovation and export profile, the current account deficit and modest net FDI intensity suggest ongoing need to balance external accounts and sustain investment flows in a rapidly evolving global context.

Governance and Institutions

Governance and institutional indicators portray a country with relatively strong, mature institutions, balanced by some variability across stability and transparency measures. Political stability and absence of violence or terrorism stands at 0.515 (2013–2023 average), ranking 71st in the dataset, indicating a moderate-to-strong degree of political stability compared with global peers but not without concerns. Regulatory quality scores at 1.54 (rank 16) and Rule of Law at 1.4 (rank 21) reflect a robust legal framework and a business-friendly regulatory environment, typical of a highly developed economy with strong property rights and contract enforcement. Control of corruption is measured at 1.48 (rank 21), and Government effectiveness at 1.16 (rank 29), suggesting generally effective governance with room for improvement in certain public-sector performance dimensions. These indicators collectively imply a governance environment conducive to innovation, investment, and entrepreneurial activity, underpinned by credible legal institutions and relatively transparent governance structures. Together with high levels of R&D investment (2.9% of GDP) and substantial patenting activity, these governance metrics support the UK’s role as a leading knowledge economy. However, the moderate political stability and the range of governance indicators hint at ongoing pressures from domestic and international changes, which policymakers must manage to sustain investor confidence, social cohesion, and long-term competitiveness.

Infrastructure and Technology

Infrastructure and technology in the United Kingdom reflect a highly connected, technologically capable economy. Internet use is nearly universal, with 96.3% of the population online in 2023, reflecting broad digital inclusion that enables a digital economy, remote work, and digital services. The country excels in knowledge-intensive outputs, as evidenced by resident patent activity (11,592 applications in 2021, rank 9) and robust R&D intensity (2.9% of GDP in 2021, rank 11), underscoring a culture of innovation and strong linkages between research and industry. High-technology exports are substantial (about $82.4 billion in 2023, rank 13), underscoring capabilities in advanced manufacturing, software, electronics, and related fields. Physical and logistical infrastructure receive high marks as well, with a Logistics Performance Index rating of 3.7 (2022) and a top-tier rank (9), indicating efficient transport, port, and logistics networks that support international trade and supply chains. Health and skills infrastructure are reinforced by a physician density of 3.17 per 1,000 people (2022) and 2.35 hospital beds per 1,000 people (2021), complemented by a high share of health expenditure and strong per-capita health spending (PPP terms). Taken together, these indicators illustrate a modern, technology-enabled economy with significant capabilities in innovation, digital connectivity, and efficient trade logistics, though with ongoing challenges admitted by limited FDI shares relative to GDP.

Environment and Sustainability

Environmental indicators show a country with a substantial but still evolving sustainability profile. Renewable energy consumption accounted for 12.2% of total final energy consumption in 2021, indicating ongoing efforts to decarbonize the energy mix, though with substantial room for expansion relative to leading renewables-driven economies. Total greenhouse gas emissions per capita (excluding LULUCF) are 5.54 t CO2e per person in 2023, reflecting an emissions footprint typical of a high-income, energy-intensive economy, while still lower than peak levels seen in some other industrialized nations. Water-stress indicators show freshwater withdrawals at 14.4% of available freshwater resources as of 2021, pointing to moderate water-resource pressures in some basins. The prevalence of undernourishment remains low at 2.5% (2022), indicating generally adequate nutrition and food security within the population. These environmental and sustainability metrics suggest that the United Kingdom faces common advanced-economy trade-offs: pursuing further decarbonization, expanding renewable energy, and improving resource efficiency while maintaining high living standards and economic performance.