UK projected to grow faster than Germany and US by 2050
The UK could grow faster than Germany and the US over the coming decades, according to new research, but only if the country does not place too many restrictions on movement of people and agrees strong trade deals as part of the Brexit process.
According to new calculations by PricewaterhouseCoopers in its 'World in 2050' report, the UK could grow at a faster rate than European counterparts Germany, France and Italy, with projected annual growth of 1.9%.
Throughout the whole period between 2017 and 2050, the UK is expected to lead the G7 group containing the US, Canada and Japan in terms of growth, but that is based on Britain's ability to remain "open to talented people from around the world after Brexit".
"Our relatively positive long-term growth projection for the UK is due to favourable demographic factors and a relatively flexible economy by European standards," said PWC chief economist John Hawksworth.
"However, developing successful trade and investment links with faster-growing emerging economies will be critical to achieving this, offsetting probable weaker trade links with the EU after Brexit."
The report says that the UK will drop to 10th position on the list of largest economies, from its current position of 9th.
The analysis also predicts that the global economy will double in size in the next 25 years, growing at a rate of 2.5% on average per year. Emerging economies are expected to be the driving force behind the growth.
"Emerging economies offer great opportunities for business – the numbers in our report make it clear that failure to engage with these markets means missing out on the bulk of economic growth we expect to see in the world economy between now and 2050," Hawksworth added.