The economies of the United States and the United Kingdom are two of the most powerful economies in the world.  Historically the UK has always, since its origins, been a powerful European economic force.  Throughout recent history, it has maintained its status as a powerful European economic player and expanded its influence into the global economic network. The UK made history when it became the world’s first industrialized nation in the 18th century.  The UK continued to play a predominant role the global industrialized economy through the 19th century.  By the end of the 19th century, other countries had begun to industrialize as well and had begun to challenge the UK for dominance over the world’s economy.  The United States enjoyed a long history of expansion due to an abundance of natural resources.  In order to settle territory, the US offered incentives to foreign immigrants in the form of land grants.  This westward expansion phase began a massive surge of immigration from other nations that wanted to take advantage of the booming US economy. The United States economy continued to gain strength through the middle of the 20th century despite several recessions and the Great Depression of the 1930’s.  The United States economy has long attracted immigrants seeking a better life.  The United States today still has one of the world’s highest migration rates.  The UK and the US economies are integrated in many ways, and when an economic downturn affects one, the other feels it as well.  So it was with the recent economic crisis of 2008.

The United States and the UK are highly industrialized nations whose economies are heavily dependent on foreign trade.  It is estimated that the US exports $994.7 billion while it imports over $1.445 trillion.  The UK exports amount to $351.3 billion and imports are estimated to be $473.6 billion.  This leaves both countries with a gap in spending more than they are selling.  The inflation rate in the UK as of March was 3%, higher than the 2.1% inflation rate in the US.  Both the economies of the United States and the UK continue to play a major world in global economics.  The UK is a member of several trade organizations, including the European Union, British Commonwealth of Nations, Organization of Economic Co-operation and Development, and the World Trade Organization.  The United States is a member of trade organizations such as North American Free Trade Association, World Trade Organization, Organization for Economic Co-operation and Development, G-20, and the G-8 among others.   Today, these two powerful economies play an important role in global economic policy in the world. (cia.gov)

The U.S. economy is the largest in the world, with a $14.204 trillion gross domestic product, or GDP, in 2009.   The United Kingdom has the 6th largest GDP in the world, and the largest in the European Union.  Its GDP in 2009 was $2.646 trillion. The UK had a gross national savings of 11.9% (as a percentage of its GDP) as of 2009 which was slightly higher than the 10.955% that the US had.  Investment, as a percentage of GDP, was at 14.978% in the US in 2009, which was higher than the UK, which had an investment rate of only 13.655%.  The output gap in % of the potential GDP for both countries is currently negative, due to the recession.  For the UK, the gap is at -4.892% while the US is at -4.45%.