The economy of England is the largest part of the UK’s economy, which has the 18th highest GDP PPP per capita in the world. England is a leader in the chemical and pharmaceutical sectors and in key technical industries, particularly aerospace, the arms industry, and the manufacturing side of the software industry. London, home to the London Stock Exchange, the United Kingdom’s main stock exchange and the largest in Europe, is England’s financial center, with 100 of Europe’s 500 largest corporations being based there. London is the largest financial center in Europe, and as of 2014 is the second largest in the world. Manchester is the largest financial and professional services sector outside London and is the mid tier private equity capital of Europe as well as one of the growing technology hubs of Europe.
The Bank of England, founded in 1694 by Scottish banker William Paterson, is the United Kingdom’s central bank. Originally established as private banker to the government of England, since 1946 it has been a state-owned institution. The bank has a monopoly on the issue of banknotes in England and Wales, although not in other parts of the United Kingdom. The government has devolved responsibility to the bank’s Monetary Policy Committee for managing the monetary policy of the country and setting interest rates.
England is highly industrialized, but since the 1970s there has been a decline in traditional heavy and manufacturing industries, and an increasing emphasis on a more service industry oriented economy. Tourism has become a significant industry, attracting millions of visitors to England each year. The export part of the economy is dominated by pharmaceuticals, cars (although many English marques are now foreign-owned, such as Land Rover, Lotus, Jaguar and Bentley), crude oil and petroleum from the English parts of North Sea oil along with Wytch Farm, aircraft engines and alcoholic beverages. The creative industries accounted for 7 per cent GVA in 2005 and grew at an average of 6 per cent per annum between 1997 and 2005.