UK economy to be overtaken by India and France within a year

UK economy

Economic growth is due to be so badly hampered by Brexit, that the economy of France will overtake the UK's within a year.

India is due to become the world's 5th largest economy next year, and France will take 6th place, beating the UK into 7th position according to the IMF.  But India had already been predicted to outpace the UK no matter the resulting fallout from Brexit.

As reported by Forbes recently, economic growth in India has never slowed in a century, and has grown around 7% a year since Prime Minister Narendra Modi and the Bharatiya Janata Party took office.

India was blighted by poverty when their economy was devastated by British rule.  Poverty levels were as high as 70% when the British pulled out of India.  70 years later, the poverty level is now 22% according to the Indian Government.

And today, the Daily Mail reports that France will overtake the British economy shortly afterwards.

However, the Centre for Economics and Business Research actually predicts that the UK economy will recover after Brexit in the longer term, and they say that even if they lose Scotland and Northern Ireland, they will overtake France again by 2026.

At present, the United States remains the largest economy in the world, but China is looking to overtake the US by 2032 according to the CEBR.

All forms of Brexit are predicted to be harmful for the British economy, and potentially devastating, at least in the short term.  But the worst case scanario, according to economists, would be for the UK to crash out of the EU without a deal. predicts that this outcome could potentially destroy the economy in the short term.

According to a report in the BBC, economic growth in Scotland will be "subdued" if it remains a part of the United Kingdom.  They also predict that wages will fall in real terms, and that growth will fail to exceed 1% by 2023, which in economic terms, is essentially 'growth recession.'

In the short term, losing Scotland would mean a £200 billion hit to UK GDP.

While not being independent, Scotland sadly remains too risky to attract significant foreign investment, or to compete with the likes of Ireland to attract huge multinational companies that could potentially bring tens of billions of pounds into the Scottish economy, as corporation tax rates are controlled by London.


Post a Comment