The UK, a leading trading power and financial center, is one of the quartet of trillion dollar economies of Western Europe. Over the past two decades the government has greatly reduced public ownership and contained the growth of social welfare programs. Agriculture is intensive, highly mechanized, and efficient by European standards, producing about 60% of food needs with less than 2% of the labor force. The UK has large coal, natural gas, and oil reserves; primary energy production accounts for 10% of GDP, one of the highest shares of any industrial nation. Services, particularly banking, insurance, and business services, account by far for the largest proportion of GDP while industry continues to decline in importance. GDP growth slipped in 2001-03 as the global downturn, the high value of the pound, and the bursting of the "new economy" bubble hurt manufacturing and exports. Output recovered in 2004, to 3.2% growth. The economy is one of the strongest in Europe; inflation, interest rates, and unemployment remain low. The relatively good economic performance has complicated the BLAIR government's efforts to make a case for Britain to join the European Economic and Monetary Union (EMU). Critics point out that the economy is doing well outside of EMU, and they cite public opinion polls that continue to show a majority of Britons opposed to the euro. Meantime, the government has been speeding up the improvement of education, transport, and health services, at a cost in higher taxes.

GDP - real growth rate: 3.2% (2004 est.)

GDP - per capita: purchasing power parity - $29,600 (2004 est.)

Labor force: 29.78 million (2004 est.)

Labor force - by occupation: agriculture 1.5%, industry 19.1%, services 79.5% (2004)

Inflation rate (consumer prices): 1.4% (2004 est.)

Agriculture - products: cereals, oilseed, potatoes, vegetables; cattle, sheep, poultry; fish

Industries: machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing, and other consumer goods.

Great Britain , the dominant industrial and maritime power of the 19th century, played a leading role in developing parliamentary democracy and in advancing literature and science. At its zenith, the British Empire stretched over one-fourth of the earth's surface. The first half of the 20th century saw the UK 's strength seriously depleted in two World Wars. The second half witnessed the dismantling of the Empire and the UK rebuilding itself into a modern and prosperous European nation. As one of five permanent members of the UN Security Council, a founding member of NATO, and of the Commonwealth, the UK pursues a global approach to foreign policy; it currently is weighing the degree of its integration with continental Europe . A member of the EU, it chose to remain outside the Economic and Monetary Union for the time being. Constitutional reform is also a significant issue in the UK . The Scottish Parliament, the National Assembly for Wales , and the Northern Ireland Assembly were established in 1999, but the latter is suspended due to bickering over the peace process.

Nationality: Noun - Briton(s). Adjective - British.

Population (2004 est.): 60.27 million.

Annual population growth rate (2004 est.): 0.29%.

Major ethnic groups: British, Irish, West Indian, South Asian.

Major religions: Church of England (Anglican), Roman Catholic, Church of Scotland (Presbyterian), Muslim.

Major languages: English, Welsh, Irish Gaelic, Scottish Gaelic.

Education: Years compulsory-12. Attendance-nearly 100%. Literacy-99%.

Health: Infant mortality rate (2004 est.)- 5.22/1,000.

Life expectancy (2004 est.): males 75.84 yrs.; females 80.83 yrs.; total 78.27 years.

Work force (2003, 29.8 million): Services-80.4%; industry-18.7%; agriculture-0.9%.

The United Kingdom's population in 2004 surpassed 60 million--the third-largest in the European Union and the 21st-largest in the world. Its overall population density is one of the highest in the world. Almost one-third of the population lives in England's prosperous and fertile southeast and is predominantly urban and suburban--with about 7.2 million in the capital of London, which remains the largest city in Europe. The United Kingdom's high literacy rate (99%) is attributable to universal public education introduced for the primary level in 1870 and secondary level in 1900. Education is mandatory from ages 5 through 16. About one-fifth of British students go on to post-secondary education. The Church of England and the Church of Scotland are the official churches in their respective parts of the country, but most religions found in the world are represented in the United Kingdom.

A group of islands close to continental Europe, the British Isles have been subject to many invasions and migrations, especially from Scandinavia and the continent, including Roman occupation for several centuries. Contemporary Britons are descended mainly from the varied ethnic stocks that settled there before the 11th century. The pre-Celtic, Celtic, Roman, Anglo-Saxon, and Norse influences were blended in Britain under the Normans, Scandinavian Vikings who had lived in Northern France. Although Celtic languages persist in Wales, Scotland, and Northern Ireland, the predominant language is English, which is primarily a blend of Anglo-Saxon and Norman French.

The Roman invasion of Britain in 55 BC and most of Britain's subsequent incorporation into the Roman Empire stimulated development and brought more active contacts with the rest of Europe. As Rome 's strength declined, the country again was exposed to invasion--including the pivotal incursions of the Angles, Saxons, and Jutes in the fifth and sixth centuries AD-up to the Norman conquest in 1066. Norman rule effectively ensured Britain 's safety from further intrusions; certain institutions, which remain characteristic of Britain , could develop. Among these are a political, administrative, cultural, and economic center in London ; a separate but established church; a system of common law; distinctive and distinguished university education; and representative government.

The United Kingdom does not have a written constitution. The equivalent body of law is based on statute, common law, and "traditional rights." Changes may come about formally through new acts of Parliament, informally through the acceptance of new practices and usage, or by judicial precedents. Although Parliament has the theoretical power to make or repeal any law, in actual practice the weight of 700 years of tradition restrains arbitrary actions.

Executive power rests nominally with the monarch but actually is exercised by a committee of ministers (cabinet) traditionally selected from among the members of the House of Commons and, to a lesser extent, the House of Lords. The prime minister is normally the leader of the largest party in the Commons, and the government is dependent on its support.

arliament represents the entire country and can legislate for the whole or for any constituent part or combination of parts. The maximum parliamentary term is 5 years, but the prime minister may ask the monarch to dissolve Parliament and call a general election at any time. The focus of legislative power is the 646-member House of Commons, which has sole jurisdiction over finance. The House of Lords, although shorn of most of its powers, can still review, amend, or delay temporarily any bills except those relating to the budget. The House of Lords has more time than the House of Commons to pursue one of its more important functions--debating public issues. In 1999, the government removed the automatic right of hereditary peers to hold seats in the House of Lords. The current house consists of appointed life peers who hold their seats for life and 92 hereditary peers who will hold their seats only until final reforms have been agreed upon and implemented. The judiciary is independent of the legislative and executive branches but cannot review the constitutionality of legislation.