Brexit British economy beats France’s world rankings | politics

The UK economy is expected to be 16% larger than the French by 2036 (Image:)

Booming investment in high-tech industries should help Britain’s economic growth outstrip that of its neighbor and historic rival across the Channel, according to the Center for Business and Enterprise (CEBR) annual survey. And Britain continues to benefit from the economic reforms carried out under Margaret Thatcher’s administration in the 1980s, according to the study.

The results come from the annual table of the World Economic League’s independent trade forecast think tank, which examines growth prospects for 193 countries.

Much to the embarrassment of French President Emmanuel Macron, research predicts that the UK economy will be 16% bigger than France’s by 2036.

He estimates that the UK economy, valued at around £ 2.1 trillion, is already 3.6% larger than France’s.

Douglas McWilliams, Vice President of CEBR, said: “Technology is the dynamic engine of economic growth and the UK is investing more in this area than France and Germany combined.

“Between half and three quarters of the UK’s economic growth comes from the technology sector. In contrast, Germany has a strong hereditary economy based on automobile construction and the like. “

He also warned that inflation is likely to become a growing problem for the global economy this year.

“The important question for the 2020s is how the world economies deal with inflation, which has now reached 6.8% in the US.

“We hope that a relatively modest adjustment of the tiller will help control the non-volatile elements.

“Otherwise the world will have to prepare for a recession in 2023 or 2024,” he said.

Britain has the fifth largest economy in the world (Image: Gary Yeowell /.)

This year’s World Economic League Table estimates the UK has the fifth largest economy in the world with a gross domestic product of around £ 36,357 per capita.

The report predicts the UK will drop to sixth place behind India in 2026.

France, currently the sixth largest economy in the world, is expected to drop to seventh place next year and maintain that place for the foreseeable future.

The study aims to bring UK financial institutions into competition with France in order to attract highly skilled staff.

According to CEBR studies, a strong global recovery from the Covid pandemic and rising inflation will result in global GDP exceeding $ 100,000 billion for the first time in 2022.

The benchmark is to be reached two years earlier than forecast by the think tank a year ago.

The report also highlights the slowdown in growth in China after the Covid pandemic.

Last year, the CEBR forecast that the Chinese economy would overtake that of the UK by 2028, but is now revising that forecast date to 2030.

India, after overtaking France and the UK in 2019, fell behind the UK in 2020 and further behind France in 2021.

The Asian giant is expected to turn 6 in 2022.

According to the think tank, India should then make good progress to become the third largest economy in the world by 2031.

Indonesia, the fourth most populous country in the world, is slated to become the world’s largest economy by 2036.

Ho Chi Minh Ville horizon

Vietnam has the fastest growing economy (Image: Alex Robinson Photography /.)

The fastest growing economies in this year’s World Economic League ranking are Vietnam, which will drop from 41st in 2021 to 20th in 2036; Bangladesh goes from 42nd to 24th and the Philippines from 37th to 25th place.

This year’s CEBR report also warns that climate change is starting to have a significant impact on the global economy.

Storms, floods, forest fires and other climate-related events burden insurers with rising costs.

Spending to decarbonize the global economy is expected to have an impact on the cost of living as well.

The CEBR estimates the additional costs for consumers around the world at an average of around two trillion US dollars per year over the forecast period in order to finance part of the net additional investment in low-emission and zero-emission production processes.

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Kay Daniel Neufeld, Director and Head of Forecasting at CEBR, said: “One of the hallmarks of this new forecast is its environmental focus.

“The range of extreme weather events this year has highlighted the environmental concerns that led to the commitments made at COP26.

“In order to achieve the ambitious goal of decarbonising the global economy by the middle of the century, all countries must step up their efforts. Importantly, we’ve identified nearly 700 of the world’s 2,000 largest companies with net zero commitments, many for 2030 or earlier.

“We estimate that around five trillion dollars of additional investment will be required annually in decarbonization, although some of it will replace other investments.

“Of that amount, about two trillion dollars will be passed on to consumers in the form of increased transportation and energy costs. “

Karl Thompson, economist at CEBR, said, “In any inflationary environment, we expect technology to be the big winner in the years to come.

“Decarbonization, the challenges of hybrid labor and the likely long-term skills shortage mean that investing heavily in technology is likely the only solution for many companies.

“We have identified nine technology areas where skill requirements are expected to increase by more than 100% by 2031, led by artificial intelligence, virtual and augmented reality, robotics and medical technology, all of which should require increased demand. by more than 300 percent.