Investing.com -- The UK is set to outperform its European counterparts over the next 15 years, maintaining its position as the world’s sixth-largest economy by 2039, according to the Centre for Economics and Business Research.
Britain will hold its lead over France, which is projected to remain in seventh place, while Germany, Italy, and Spain are expected to slip down the global rankings. The UK is forecast to narrow the economic gap with Germany, which will be 20% larger than Britain’s economy in 2039, compared to the current 31%.
“While this outlook is markedly better than key European peers like France and Germany, both of whom are expected to slip, this reflects a relatively poorer outlook for Eurozone economies rather than strong UK growth,” CEBR said.
The report comes as Prime Minister Keir Starmer faces economic challenges during Labour’s early months in government. Official data show no economic growth since Labour took power in July, with survey indicators pointing to a weak end to 2024 and further strain into 2025.
Starmer’s plans to drive faster growth through planning reforms, housing initiatives, and public investment aim to reinvigorate the economy. However, CEBR warns that recent tax hikes could weigh on short-term activity. Over the longer term, it expects Britain’s trend growth rate to stabilize at 1.8%.
Globally, the United States is projected to retain its position as the largest economy, fending off competition from China.