The UK economy is made up of the economies of England, Scotland, Wales and Northern Ireland. The service sector of the United Kingdom is dominated by financial services, especially in banking and insurance. London is the world's largest financial centre with the London Stock Exchange, the London International Financial Futures and Options Exchange, and the Lloyd's of London insurance market all based in the City of London.London is a major centre for international business and commerce, the UK economy has been managed in accordance with principles of market liberalisation and low taxation and regulation. Based on market exchange rates, the United Kingdom is the fifth largest economy in the world, and the second largest in Europe after Germany.
Tourism is very important to the British economy. With over 27 million tourists a year, the United Kingdom is ranked as the sixth major tourist destination in the world. The creative industries accounted for 7.3% GVA in 2004 and grew at an average of 5% per annum between 1997 and 2004. (creative industries : creating and exploiting intellectual property products; such as Music, books, film, and games, or providing business-to-business creative services such as Advertising, Public Relations and Direct Marketing)
The currency of the UK is the pound sterling, represented by the symbol £. The Bank of England is the central bank, responsible for issuing currency. Banks in Scotland and Northern Ireland retain the right to issue their own notes, subject to retaining enough Bank of England notes in reserve to cover the issue.