UK becomes Europe's best performing major economy

The UK is likely to be Europe’s best-performing major economy over the next 15 years, narrowing the gap with Germany and increasing its lead over France.

This comes from a leading UK consultancy in new long-term forecasts. The Centre for Economics and Business Research (CEBR) estimates that annual economic growth in Great Britain will range between 1.6% and 1.8% between now and 2038.

This means that the British will eventually emerge from the economic malaise caused by Brexit, the coronavirus pandemic and rising inflation. The country's economy is said to be growing faster than countries such as France, Germany, Italy and Spain.

productivity

Indeed, the UK economy has been struggling to improve its productivity since the financial crisis. There has also been a significant shortage of workers in recent years. This has led the Bank of England, for example, to take a rather gloomy view of growth prospects in the coming years in recent estimates. But according to the CEBR, the picture looks a little more positive if we look a little longer term.

“The fundamentals of the UK economy remain very strong,” says Pushpin Singh, an economist at CEBR. “London’s continued status as a financial and advisory services hub, coupled with the broader strength of the UK’s services sector, will drive UK growth.” Singh believes the economic impact of Brexit is often overstated and often not properly researched.

China

The projected growth would allow Great Britain to maintain its position as the world’s sixth-largest economy. The world’s largest economy is currently the United States, but according to CEBR, China is likely to overtake it in 2037. Economists have long predicted that China will eventually overtake the United States.

The CEBR also assumes that Italy will disappear from the top ten economies by 2038. The alternative will be South Korea. Moreover, like the United States, Germany will fall in the rankings, while India and Brazil will gain a higher ranking in the top ten.

The consultation also suggests that the size of the global economy will double, with many poor countries catching up with richer ones.

Source: National Police Agency