According to new analysis conducted by PwC, the UK could grow faster than other large European countries such as Germany, France and Italy in the long run, despite some medium-term drag that may be experienced as a result of the Brexit decision.
PwC’s ‘World in 2050’ Report projects that the UK will fall just one place from ninth to tenth in global economy rankings in purchasing power parity (PPP) terms by 2050. If measured instead by GDP at market exchange rates, then the UK could fall from fifth to ninth place by 2050, but will still remain in the Top 10 on either measure.
With potential average annual growth of around 1.9%, the UK is projected to be the fastest-growing economy in the G7 over the whole period to 2050. The UK’s position is sustained by its relatively larger projected working age share of the population than in most other advanced economies.
However, this growth potential does depend on the country remaining open to talented people from around the world post-Brexit.