T H E U K S T R A T E G I C I N V E S T M E N T F U N D – I N T E R I M R E P O R T
An objective assessment of the UK’ s core strengths in this global economy suggests that the UK has a comparative advantage in many services sectors, in particular high value added professional services such as financial services, computer & information services and other business services, but also strengths in manufacturing sectors such as medical and pharmaceutical products( Figure 1).
Financial services( 7.7 %) Insurance( 1.1 %) Communications( 1.1 %) Other business services( 10.2 %) Telecoms Equipment( 8.1 %) Computer and info. services( 1.9 %) Medical and Pharma Products( 3.7 %) Machinery and Transport Equip.( 8.2 %) Other Manufactured Goods( 9.9 %) Chemicals and Related Products( 5.7 %) Office Machinery and Equip.( 3.1 %) Road Vehicles( 5.3 %)
UK Emerging Market
Food, Drink and Tobacco( 3.0 %) Metals and Metal Products( 3.9 %) Electrical Machinery( 3.2 %) Clothing and Textiles( 1.6 %)
-0.7-0.6-0.5-0.4-0.3-0.2-0.1 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7
Figure 1: UK and Emerging Market Revealed Comparative Advantage
Source: BIS Calculations based on UNCOMTRADE and IMF Balance of Payments data, 2006
Investments made by the Strategic Investment Fund reflect the opportunities arising from the wider global trends and aim to build on the UK’ s core strengths.
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