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STRUCTURE OF ECONOMY
As in most developed countries, the share of manufacturing in the UK economy has declined relative to the services sector. The service sector accounts for two-thirds of GDP, while manufacturing represents less than 20% of national output. UK was the first country to start industrial revolution and now the fall in share of manufacturing has been more pronounced than in most other industrialised countries.
The production of about 60% of food needs by 1% of the labor force indicates that agriculture is intensive, highly mechanized and efficient.
The United Kingdom is the world's leading trading power and financial centre. The financial and business services sector as a whole accounts for over 70% of GDP, a reflection both of the traditional strength of the City of London and of the rapid growth in business services over the past decade.
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The communications sector has also been growing fast, but prices within the sector have fallen as a result of rapid productivity growth (so its share of GDP at current prices has remained stable). The construction sector tipped into recession in the early 1990s in the wake of sharp falls in house prices and cutbacks in government capital spending programmes, but has recovered since 1997.
The economy of United Kingdom is the strongest in Europe and it was this relatively good economic performance that had complicated the government's efforts to join the European Economic and Monetary Union (EMU). A majority of Britons are still opposed to the single currency as they feel they are doing well without any alliance. Thus, UK is continuing with its old age currency of pound (GBP) while, other European nations have adopted a euro as their single currency from Jan 1, 2002.
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