"Positive demographics with continuing immigration [and] rather less exposure to the problems of the eurozone than other European economies combine with relatively low taxes by European standards to encourage faster growth than in most western economies"
- The Centre for Economic and Business Research
The U.K. will leapfrog Germany to become the largest economy in Europe by 2030, the recent survey from the Centre for Economics and Business Research showed Thursday. A rapid growth of population, low taxes, insulation from the worst of the Eurozone's financial problems and positive fundamental data will all be contributing to Britain's rapid growth during the next two decades. While the pace of growth of emerging economies like India, Brazil and Russia will force the U.K. to slip down in the global rating, the company predicts the country to become the second most successful western economy after the United States.
The research also showed that a deutschemark-based Germany will be stronger than the one having the shared currency in circulation. Regarding other European countries, France will drop to 13th position by 2028 from current fifth position, while Italy will become the world's 15th largest economy during next 15 years. Current Italy is the eighth biggest economy.
Meanwhile, another factor that is benefitting British economy, is a decision not to join the Euro, the company said. The cable has been trading above the strong psychological level of 1.60 during the second part of the year. In the meantime, the CEBR pointed out that these forecasts should be treated with caution due to unpredictable fluctuations in currencies.
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