The United Kingdom, with a population of 69.2 million people and a GDP of $3.64 trillion (2024), is a major international trading power, with the sixth-largest economy in the world, according to the World Bank. Though geographically small (the United Kingdom is roughly the size of Oregon), it has the second-largest economy in Europe.
With the effects of the UK’s exit from the European Union (“Brexit”) largely behind them, the UK has emerged as a critical market for American exports of goods and services. U.S. exports of goods and services to the UK reached $179.5 billion in 2024, up 7.5% from 2023, ranking the UK in fifth place among export destinations for American goods and placing it in the number one spot for trading in services.
Major categories of U.S. exports include financial and professional services, industrial supplies, agricultural products, cyber security and other IT, medical equipment, consumer goods, smart grids, and travel & tourism. The UK ranks third in overall number of travelers arriving to the United States (behind Canada and Mexico, respectively), making the UK the number one overseas market for travel to the United States, with four to five million UK travelers visiting the United States each year and contributing over $14 billion to the American economy annually.
The U.S.-UK investment relationship is the largest in the world, with cumulative bilateral stock in direct investment valued at more than $1.76 trillion in 2024. In 2024, the U.S. direct investment position in the United Kingdom (outward) topped $1.02 trillion, flat from 2023. The direct investment position from the United Kingdom to the United States (inward) was $742.7 billion, an increase of 7.7% from 2023. Around 2.7 million jobs, 1.48 million in the UK and 1.22 million in the United States, are directly supported by these investments.
More than 7,500 U.S. firms have a presence in the United Kingdom, which is also the top location in Europe for U.S. regional headquarters covering Europe, the Middle East, and Africa. According to one recent survey, however, U.S. investment confidence in the UK has declined slightly in 2025, in large part due to lingering uncertainty and challenges to the UK-EU trade relationship in addition to policy uncertainty, regulation, high taxes and high energy costs.
Political Environment
Visit State Department’s website for background on the country’s political and economic environment:
United Kingdom - United States Department of State