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 RoverLotusJaguar and Bentley), crude oil and petroleum from the English parts of North Sea oil along with Wytch Farmaircraft 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.

A grey coloured car.
The Bentley Mulsanne

Most of the UK’s £30 billion aerospace industry is primarily based in England. The global market opportunity for UK aerospace manufacturers over the next two decades is estimated at £3.5 trillion. GKN Aerospace – an expert in metallic and composite aero structures is involved in almost every civil and military fixed and rotary wing aircraft in production is based in Redditch.

BAE Systems makes large sections of the Typhoon Eurofighter at its sub-assembly plant in Salmesbury and assembles the aircraft for the RAF at its Warton plant, near Preston. It is also a principal subcontractor on the F35 Joint Strike Fighter – the world’s largest single defense project – for which it designs and manufactures a range of components including the aft fuselage, vertical and horizontal tail and wing tips and fuel system. It also manufactures the Hawk, the world’s most successful jet training aircraft.

Rolls-Royce PLC is the world’s second-largest aero-engine manufacturer. Its engines power more than 30 types of commercial aircraft, and it has more 30,000 engines currently in service across both the civil and defense sectors. With a workforce of over 12,000 people, Derby has the largest concentration of Rolls-Royce employees in the UK. Rolls-Royce also produces low-emission power systems for ships; makes critical equipment and safety systems for the nuclear industry and powers offshore platforms and major pipelines for the oil and gas industry. The pharmaceutical industry plays an important role in the economy, and the UK has the third-highest share of global pharmaceutical R&D expenditures.

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