Bumper growth will put Britain on course to become the world’s fourth largest economic powerhouse ahead of Japan and Germany in the 2030s, new analysis shows.
Britain is currently the world’s fifth largest economy based on total Gross Domestic Product (GDP), which currently stands at $3.04 trillion. The UK overtook France in GDP terms in 2014.
The UK is set to become the best performing economy in the western world over the next 15 years, boosted by its leading position in global software and IT sectors, according to a report by the Center for Economics Business and Research.
The total cash value of the UK economy will grow to around $4.7 trillion by 2031, but is expected to be quickly overtaken by Brazil in fourth spot by the 2040s.
UK economic growth is set to hit 2.9 percent this year, the second fastest in the advanced world after the US. It means the economy is now 6.1 percent larger than its pre-financial crisis peak, according to the CEBR’s latest world economic league table.
India could become the world’s third largest economy after 2030 and its ascension could see France and Italy kicked out of the exclusive G8 group or its membership increased to 10 to accommodate India and Brazil, according to the study.
According to the report, China will overtake the US as the largest economy in the world in 2029 with the US slipping to second place and India close behind at third.
India’s projected GDP in 2030 was $10,133 billion, behind America’s $32,996 billion and China at the top with a projected GDP of $34,338 billion.
However, India will become the largest economy in the Commonwealth in 2019 when its economy overtakes the British economy.
The study also says that India is finally starting to catch up with China and will eventually overtake the Communist-giant in the second half of the century.
Europe’s third and fourth largest economies will be replaced by India and Brazil in the G8 over the next 15 years, the report says.
As Brazil and India meet the political criteria for membership of the exclusive G8 club of developed democracies, their ascension could see France and Italy kicked out of the group, or the club expanded to a G10 as more economies join, the report says.
The UK meanwhile is set to become the best performing economy in the western world over the next 15 years, boosted by its leading position in global software and IT sectors.
The CEBR said France’s “dire” economic prospects will see it fall from the world’s 5th to 9th largest economy by 2030.
Italy — currently 8th in the global league table — is also going through tough times.
Since joining the euro in 2000, GDP growth has remained flat, making it the slowest growing economy of any major developed nation.
Europe’s largest economy, Germany, will maintain its position in the world’s leading economies as its declining population receives a welcome boost of a 1.5 million refugees and migrants, according to the analysis.
Source: Arab News