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COUNTRYPROFILE UNITED KINGDOM

CONTENTS<<COUNTRY>>

IMD World Competitiveness Yearbook, Talent & Digital 2020: summaries

WORLD COMPETITIVENESSRANKING 2020

All data are available from theWorld Competitiveness Online.

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BASIC FACTSCapital

Land area (square km '000) 2442019

Exchange Rate (per $) 0.7832019

Population - market size (millions) 66.872019 13

Gross Domestic Product (GDP) (US$ billions) 2,827.12019 6

GDP (PPP) per capita (US$) 47,2942019 22

Real GDP growth (%) 1.42019 42

Consumer price inflation (%) 1.792019 31

Unemployment rate (%) 3.742019 19

Labor force (millions) 33.962019 12

Current account balance (% of GDP) -3.782019 57

Direct investment stocks inward ($bn) 1,890.42018 3

Direct investment flows inward (% of GDP) 0.962019 51

PEER GROUPS RANKINGSEUROPE - MIDDLE EAST - AFRICA (40 countries) POPULATIONS > 20 MILLION (29 countries)

COMPETITIVENESS TRENDS - OVERALL

UNITED KINGDOMOVERALL PERFORMANCE (63 countries) Rank

London

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COMPETITIVENESS LANDSCAPE

18 19 20 23 19

2016 2017 2018 2019 2020

19 1712

19

61

3627

1610

23 2027

9

2534

25

1511 12

18

Dom

estic

Eco

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Inte

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l Tra

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Inte

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l Inv

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Empl

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ent

Pric

es

Publ

ic F

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ce

Tax

Polic

y

Inst

itutio

nal F

ram

ewor

k

Busi

ness

Leg

isla

tion

Soci

etal

Fra

mew

ork

Prod

uctiv

ity &

Effi

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cy

Labo

r M

arke

t

Fina

nce

Man

agem

ent

Prac

tices

Att

itude

s an

d V

alue

s

Basi

c In

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truc

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Tech

nolo

gica

l Inf

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Scie

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c In

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Hea

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Educ

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Economic Performance Government Efficiency Business Efficiency Infrastructure

11 12 13 14 13

2016 2017 2018 2019 2020

6 6 7 86

2016 2017 2018 2019 2020

IMPROVEMENTSWCY 2019

WCY 2020 DECLINES

WCY 2019

1.1.18 Gross fixed capital formation - real growth -0.01 2.28 1.4.04 Employment - long-term growth 2.52

2.5.04 Risk of political instability 3.32 6.79 2.4.07 Government subsidies 0.86

2.3.08 Exchange rate stability 0.031 0.005 3.2.20 Attracting and retaining talents 7.60

3.2.14 Labor force long-term growth 0.26 0.40 4.4.23 Environment-related technologies 3.36

2.5.05 Social cohesion 4.25 5.97 1.2.25 Tourism receipts 1.94

4.3.18 Number of patents in force 242.1 330.6 3.3.01 Banking sector assets 186.27

1.3.13 Relocation threats of business 3.75 4.91 4.1.07 Population - growth 0.65

3.5.02 Image abroad or branding 4.80 6.21 4.4.04 Health infrastructure 6.37

1.5.01 Consumer price inflation 2.48 1.79 3.4.11 Women in management 36.17

2.3.10 Adaptability of government policy 4.17 5.29 4.4.27 Environmental laws 6.99

4.5.20 Language skills 4.48 5.44 2.4.03 Public sector contracts 7.46

1.2.12 Exports of commercial services ($bn) 347.34 412.05 2.5.02 Homicide 1.20

3.1.07 Workforce productivity 5.66 6.71 2.4.09 State ownership of enterprises 7.21

1.4.08 Long-term unemployment 1.10 0.90 3.3.19 Corporate debt 6.93

3.5.06 Digital transformation in companies 5.13 5.97 4.5.06 Pupil-teacher ratio (secondary education) 15.78

COMPETITIVENESS EVOLUTION & ATTRACTIVENESS INDICATORS

UNITED KINGDOMCOMPETITIVENESS EVOLUTION

2.06

1.81

174.21

0.60

5.97

34.22

6.65

6.68

The criteria below highlight the 15 biggest Improvements and the 15 biggest Declines in the overall performance of the economy. They are

determined by the largest percentage changes in the value of each criterion from one yearbook to the next.

WCY 2020

16.35

KEY ATTRACTIVENESS INDICATORSFrom a list of 15 indicators, respondents of the Executive Opinion Survey were asked to select 5 that they perceived as the key

attractiveness factors of their economy. The chart shows the percentage of responses per indicator from the highest number of responses

to the lowest.

0.99

6.79

3.10

7.15

1.25

6.94

11.8%13.2%14.7%22.1%23.5%25.0%27.9%27.9%29.4%30.9%39.7%42.6%51.5%55.9%57.4%

0% 10% 20% 30% 40% 50% 60% 70%

Competency of governmentCompetitive tax regime

Cost competitivenessEffective labor relations

Reliable infrastructurePolicy stability & predictability

Dynamism of the economyOpen and positive attitudes

Quality of corporate governanceStrong R&D cultureAccess to financing

High educational levelBusiness-friendly environment

Skilled workforceEffective legal environment

WORLD COMPETITIVENESSDIGITAL RANKING 2020

All data are available from theWorld Competitiveness Online.

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Alpha AlphaLabelBeta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

6.5 4 4 2 28.5 4 4 2 211 4 4 2 2

2016 2017 2018 2019 2020

12 11 10 15 13

11 10 10 14 13

18 16 13 18 16

11 9 3 13 13

OVERALL

Future readiness

PEER GROUPS RANKINGS

EUROPE - MIDDLE EAST - AFRICA (40 countries) POPULATIONS > 20 MILLION (29 countries)

COMPETITIVENESS & DIGITAL RANKINGS

Technology

DIGITAL TRENDS - OVERALL

UNITED KINGDOM

OVERALL PERFORMANCE (63 countries)

OVERALL & FACTORS - 5 years

Knowledge

12 11 10

1513

18 19 2023

19

2016 2017 2018 2019 2020

Digital

Competitiveness

7 7 78

7

2016 2017 2018 2019 2020

3 3 36 5

2016 2017 2018 2019 2020

13 10 25 8

16 17 22 2213

13 11 25 11

Knowledge Talent Training & education Scientific concentration

Technology Regulatory framework Capital Technological framework

Future readiness Adaptive attitudes Business agility IT integrationThe direction of the triangle indicates the performance change from the last year: improved or stabledeclined

Overall Factors Sub-Factors

N.B. This graph provides only a comparison of the country’s performance in the two rankings.

u Overall top strengths

w Overall top weaknesses

Subfactors 2016 2017 2018 2019 20207 7 9 17 10

19 19 20 23 25

10 11 8 8 8

Talent Rank Rank Rank

Educational assessment PISA - Math 17 w 41 22 International experience 18 27 19 Foreign highly-skilled personnel 18 16 24 Management of cities 19 35 u 5 Digital/Technological skills 20 22 9u Net flow of international students 5 18 22 u 6

Subfactors 2016 2017 2018 2019 202011 12 7 18 17

25 24 17 22 22

16 16 17 18 22

Regulatory framework Rank Rank Rank

Starting a business 9 32 31 Enforcing contracts 27 17 19w Immigration laws 43 17 25 Development & application of tech. 13 18 15 Scientific research legislation 16 u 5 w 35 Intellectual property rights 10 w 53 14

Subfactors 2016 2017 2018 2019 20204 6 4 10 11

25 22 16 26 25

13 6 2 14 11

Adaptive attitudes Rank Rank Rank

E-Participation 6 28 7u Internet retailing 3 14 18 Tablet possession 17 26 27 Smartphone possession 22 23 10w Attitudes toward globalization 39 18 34

Training & education Scientific concentration

Talent

Robots in Education and R&D

IT integration

Business agility IT integration

Scientific concentration

Capital Technological framework

FACTORS BREAKDOWN - STRENGTHS AND WEAKNESSES

UNITED KINGDOM

FUTURE READINESS

TECHNOLOGY

Technological framework

Opportunities and threats E-GovernmentWorld robots distribution Public-private partnerships

IT & media stock market capitalization Communications technology

Regulatory framework

Capital

KNOWLEDGE

Entrepreneurial fear of failure

Agility of companies Cyber securityUse of big data and analytics Software piracyKnowledge transfer

Adaptive attitudes

Business agility

Venture capital Internet bandwidth speedInvestment in Telecommunications High-tech exports (%)

Funding for technological development Mobile Broadband subscribersBanking and financial services Wireless broadbandCountry credit rating Internet users

Training & education

Employee training Total expenditure on R&D (%)Total public expenditure on education Total R&D personnel per capitaHigher education achievement Female researchersPupil-teacher ratio (tertiary education) R&D productivity by publicationGraduates in Sciences Scientific and technical employmentWomen with degrees High-tech patent grants

WORLD TALENTRANKING 2020

All data are available from theWorld Competitiveness Online.

Visit our eShop

Alpha AlphaLabel Beta BetaLabel Gamma GammaLabel1 2 2 2 2 2 24 4 4 2 2

Value

4.8 % 27 9,052 US$ 20w 19.89 ratio 52w 17.08 ratio 51 5.24 Survey [0..10] 30w 5.65 Survey [0..10] 41 47.16 % 18 5.97 Survey [0..10] 35

Value

w 94.20 index 50 6.79 Survey [0..10] 32 6.06 Survey [0..10] 29 6.38 Survey [0..10] 16 7.22 Survey [0..10] 29 6.61 Survey [0..10] 18 39,774 US$ 17u 250,925 US$ 13 20.07 % 37u 7.91 Survey [0..10] 15 10.44 micrograms 16

Value

0.78 % 35 6.03 Survey [0..10] 28u 7.44 Survey [0..10] 14 6.24 Survey [0..10] 18 6.53 Survey [0..10] 15 6.62 Survey [0..10] 27 26.91 % 21 7.62 Survey [0..10] 17 7.13 Survey [0..10] 19w 5.44 Survey [0..10] 43u 6.80 number 7u 503 Average 13

Investment & Development 2020 Rank

Health infrastructure meets the needs of society

2020 Rank

Total public expenditure on education Percentage of GDP

ApprenticeshipsEmployee training is a high priority in companies

Readiness 2020 Rank

Educational assessment - PISA PISA survey of 15-year olds

Appeal

Exposure to particle pollution Mean population exposure to PM2.5, Micrograms per cubic metre

Labor force growth Percentage change

Index of a basket of goods & services in the main city, including housing (New York City = 100)

Skilled labor is readily available

Cost-of-living index

Female labor force Percentage of total labor force

Pupil-teacher ratio (secondary education) Ratio of students to teaching staff

are sufficiently implemented

Total public exp. on education per student Spending per enrolled pupil/student, all levels

Pupil-teacher ratio (primary education) Ratio of students to teaching staff

Management education meets the needs of the business community

Language skills are meeting the needs of enterprises

Student mobility inbound Foreign tertiary-level students per 1000 inhabitants

Primary and secondary education meets the needs of a competitive economy

Graduates in Sciences % of graduates in ICT, Engineering, Math & Natural Sciences

University education meets the needs of a competitive economy

Finance skills are readily available

International experience of senior managers is generally significant

Competent senior managers are readily available

Justice is fairly administered

Gross annual income including supplements such as bonuses, US$

Remuneration of management Total base salary plus bonuses and long-term incentives, US$

Effective personal income tax rate Percentage of an income equal to GDP per capita

Attracting and retaining talents is a priority in companies

Worker motivation in companies is high

Brain drain (well-educated and skilled people) does not hinder competitiveness in your economy

Quality of life is high

Foreign highly-skilled personnel are attracted to your country's business environment

Remuneration in services professions

OVERALL PERFORMANCE (63 countries)

IMD World Talent Ranking 2020

UNITED KINGDOM

2021

2324

23

3637 37

38 38

16

1918

192020 20

17

23

17

2016 2017 2018 2019 2020

Overall

Investment &Development

Appeal

Readiness

38

2023

17

Investment & Development

Appeal

Readiness

The direction of the triangle indicates the performance change from the last year: improved or stabledeclined

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IMD WORLDTALENTRANKING 2020

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