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The British Economy Is Expected to Boom in the 20s

New research suggests that the post-Brexit economy in the UK will be one of the world’s strongest. In fact, it predicts a decade of growth that keeps it ahead of countries such as France, Italy and Brazil.

What Does the Report Say?

This data comes from the Centre for Economic and Business Research (CEBR). They released their annual version of the World Economic League Table (WELT). Douglas McWilliams is the Deputy Chairman of the CEBR. He said that their league table “tracks relative economic progress”.

This listing shows that the US remains the planet’s leading economic power, with 24.8% of the global GDP. It is their highest share of the world economy in 12 years. McWilliams believes that it may have reached its peak, as “the deficit and its trade disputes will start to hold it back”.

China is next, with Japan in third place and Germany in fourth spot. Fifth place is claimed by India, although it is expected that it will overtake Germany by 2026. The UK comes in at sixth, ahead of France, Italy, Brazil and Canada.

Much of the optimism comes from the prospect of a lucrative trade deal with the US. It is expected that Boris Johnson and Donald Trump will meet early in 2020 to discuss this. Once the country leaves the EU, leaders will also need to confirm their future trading deal with Europe too.

Among the biggest expected trade deals for the UK are those with Australia and Japan. The report confirms that 2019 saw the UK GDP grow despite the ongoing uncertainty throughout the year. However, struggling businesses turned to the debt collection process where necessary.

Brexit Uncertainty Coming to an End

There is no doubt that the end of the uncertainty around Brexit is a positive factor. However, despite the recent period of uncertainty, Britain managed to remain ahead of the French economy. Some analysts had expected the French economy to overtake the British equivalent in this period.

With some people dubbing the next decade the Roaring 20s, Britain is predicted to grow faster than France in the next ten years or so. By 2034, the UK economy will be 25% bigger than the French economy, according to the report.      

The biggest issue that the UK faces in the 20s could be over how to maintain a solid, cohesive country. The debate over possible independence for Scotland is expected to remain troublesome in the next decade.

Other Figures from the WELT

The WELT also shows that the UK is the ninth easiest country in terms of ease of doing business. This places it comfortably ahead of most other European countries. 

Annual growth in the UK GDP is predicted as being 1.9% between 2020 and 2024. It is then expected to drop to 1.5% from 2024 to 2034. However, the strength of upcoming trade deals could affect these numbers.

In the UK, business confidence is higher than it has been in over three years. This is the result of a survey of close to 1000 company directors, carried out by the Institute of Directors.