The Economy of England is the largest economy of the four countries of the United Kingdom.
England is a highly industrialised country. It is an important producer of textiles and chemical products. Although automobiles, locomotives, and aircraft are among England's other important industrial products, a significant proportion of the country's income comes from the City.
Since the 1990s, the financial services sector has played an increasingly significant role in the English economy and the City of London is one of the world's largest financial centres. Banks, insurance companies, commodity and futures exchanges are heavily concentrated in the City.
The service sector of the economy as a whole is now the largest in England, with manufacturing and primary industries in decline. The only major secondary industry that is growing is the construction industry, fuelled by economic growth provided mainly by the growing services, administrative and financial sector.
In medieval times (c. 11th–15th century), the wool trade was the major industry of England and the country exported wool to Europe. Many market towns and ports grew up on the industry. Poor infrastructure hampered the development of large scale industry. This changed when the canals and railways began to be built, in the late 18th century and early 19th century.
England became the world's first industrialised nation, with the industrial revolution taking place in the late 18th century. This was also the age of British overseas expansion, where England relied upon colonies (such as India, America, Canada, or Australia) to bring in resources such as cotton and tobacco. English factories then processed goods and sold them on in both the quickly growing domestic market or abroad. Cities grew and large industrial centres were established, especially in the Midlands and North England.
Heavy industries, such as coal mining, steel production and shipbuilding, declined in England during the second half of the 20th century and were replaced by service industries and hi-tech industries, such as the computer and pharmaceutical industries.
Agriculture and fishing
Agriculture is intensive, highly mechanised, and efficient by European standards, producing about 60% of food needs with only 2% of the labour force. It contributes around 2% of GDP. Around two thirds of production is devoted to livestock, and one third to arable crops. Agriculture is heavily subsidised by the European Union's Common Agricultural Policy and it is not known how large a sector it would be if the market was unregulated.
The main crops that are grown are wheat, barley, oats, potatoes, sugar beets and oil seed rape. The livestock that is raised comprises mainly cattle and sheep. In the drier east, farmers raise wheat, barley, oats, potatoes, and sugar beets. Apples are grown in the west. Cornwall and the nearby Isles of Scilly, that have the mildest climate and longest growing season in England, raise winter vegetables, fruits, and flowers for the London Market.
England is one of the world's leading fishing nations. Its fleets bring home fish of every kind, ranging from sole to herring. Kingston upon Hull, Grimsby, Fleetwood, Great Yarmouth, and Lowestoft are among the coastal towns that have large fishing industries.
Investing and banking
England's capital is London. The City of London is London's major financial district, and one of the world's leading financial centres. The city is where the London Stock Exchange, as well as many other exchanges, are based.
Service industries, particularly banking, insurance, and business services, account by far for the largest proportion of GDP and employ around 80% of the working population.
Leeds is the UK's second largest financial centre, with over 30 national and international banks based in the city. Over 124,000 people are employed in banking and financial services in Leeds, and over in the wider Leeds City Region.
Manchester is the largest financial and professional services sector outside of London and is the mid tier private equity capital of Europe.
Manufacturing
Manufacturing continues to decline in importance. In the 1960s and 70s manufacturing was a significant part of England's economic output. However, a lot of the heavy manufacturing industry was government-run and had failed to respond to world markets. State industries were sold off and over the 20th century many closed as they were unable to compete; a situation largely reflected in other Western industrialised countries. However, manufacturing still accounts for some 26% of the UK's GDP. England remains a key player in the aerospace, defense, pharmaceutical and chemical industries, and British companies worldwide continue to have a role in the sector through foreign investment.
Tourism
Tourism is the 6th largest industry in the England contributing £76 billion to the economy. It employs 1,800,000 full-time equivalent people — 6.1% of the working population. The largest centre for tourism is London, which attracts millions of international tourists every year.
Textile (will be discussed in the next topic " Wool To Cotton"
