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The UK is once again the world's fifth largest economy after overtaking India despite the coronavirus recession


The UK is again the world's fifth largest economy after overtaking India, despite a deep recession hit it during the coronavirus pandemic

  • Ranking list compiled by the Center for Economic and Business Research (CEBR)
  • The UK will continue to drive seventh place in France in the ten years after Brexit
  • Despite a GDP decline of 21.2% in the first half of 2020, the ranking is rising again

The UK is once again the fifth largest economy in the world, despite having experienced a deep recession as a result of the coronavirus pandemic.

According to the Center for Economic and Business Research (CEBR) annual ranking, the UK has skipped India and will continue to advance to seventh place in France in the ten years after Brexit.

The UK had slipped behind India last year to be the sixth largest economy, but the Asian nation was pushed back below the UK after a deep recession related to the coronavirus pandemic and a sharp drop in the US dollar rupee.

The UK's rise in the rankings is on record despite a cumulative GDP decline of 21.2 percent in the first half of 2020 when the first national lockdown, imposed in March, weighed on the economy.

Leading CEBR also forecast that China would overtake America, the world's largest economy, five years earlier than expected in 2028.

The UK is once again the fifth largest economy in the world, despite having experienced a deep recession as a result of the coronavirus pandemic

The UK is expected to have experienced the deepest recession of any leading G7 this year.

The domestic independent forecaster, the Office of Budgetary Responsibility (OBR), forecasts an average annual growth rate of 3.4 percent.

However, the CEBR is more optimistic and says the annual growth rate will average 4 percent through 2025.

According to the body, the growth rate will be 1.8 percent annually from 2026 to 2030.

By 2035, UK GDP in dollars is projected to be 23 percent above traditional economic rival France.

However, the CEBR also predicts that the UK will be overtaken by India again in the Economic League tables in 2024, meaning it will drop to sixth overall.

Douglas Williams, vice chairman of CEBR, suggested that the UK digital sector would thrive in the years to come.

"People often forget that the UK's largest business sector is digital and creative," he said.

& # 39; We have a tremendous competitive advantage in this technology-based sector that the pandemic has propelled.

"Most of it is pretty Brexit-proof, provided the UK continues to attract talented people."

The current unemployment rate in the UK – 4.8 percent of the labor force – is cheap compared to the EU average of 8.4 percent.

The CEBR added that "despite Brexit" Great Britain remains "one of the best performing in Europe".

Regarding India, CEBR said: "India's economy was already losing momentum before the shock from the COVID-19 crisis."

They pointed out that GDP growth fell to a more than ten-year low of 4.2 percent in 2019.

They added, "The COVID-19 pandemic has been a human and economic disaster for India."

The CEBR report, released ahead of the UK's announcement with the EU on Thursday, follows last week's news that the UK economy grew 16 percent between July and September.

It represents the largest quarterly expansion in the UK economy recorded by the National Statistics Office (ONS) since records began in 1955.

The UK's rise in the rankings is on record despite a cumulative GDP decline of 21.2 percent in the first half of 2020 when the first national lockdown, imposed in March, weighed on the economy

The UK's rise in the rankings is on record despite a cumulative GDP decline of 21.2 percent in the first half of 2020 when the first national lockdown, imposed in March, weighed on the economy

The ONS data also showed the shocking GDP slump in the first half of 2020.

The economy contracted three percent in the first quarter between January and March before collapsing 18.8 percent in the second quarter as draconian coronavirus restrictions increased sharply.

Despite the massive rebound in the third quarter, the ONS said UK GDP was still 8.6 percent below pre-pandemic levels.

Meanwhile, national debt remains at record levels as the UK's national debt continues to rise above £ 2 trillion and debt is now at its highest level since 1962.

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