The British economy is one of the largest economies in the world. As in the United States, private consumption had been driving growth. Manufacturing’s share of the economy has declined relative to the services sector, but the fall has been more pronounced than in most other industrialized countries, and now represents less than one-fifth of national output. Meanwhile, the services sector has grown in importance and now accounts for about two-thirds of GDP.

Britain is one of three European Union (EU) nations that chose to remain outside the European Monetary Union for now. Immediately after Tony Blair’s reelection in 2001, sterling fell in value on anticipation that joining the EMU was just around the corner because of the Labour Party’s bias towards entry. But that clearly was not the case. When Gordon Brown, Tony Blair’s chancellor of the exchequer became prime minister, chances of British membership in the EMU did not improve and the issue remains on the back burner. Now with the conservative party in power along with recent events, it is unlikely that the UK would consider EMU membership anytime soon.