UK to Drop from the Top Ten Economies in the World by 2050-Poor Productivity and Ageing Population
As a result of an ageing population and very few hard workers, UK is poised to vacate its position as one of the top world economies courtesy of a report by Pricewaterhouse Coopers. The report also claimed that Malaysia, Poland, Colombia, Vietnam, Nigeria, Turkey and Mexico might be overtaking the United Kingdom in 35 years.
In terms of total wealth, UK is currently tenth of all global economies and expected to remain at that position up to 2030 where it could slip by 2050 to 11th place courtesy of the study, behind Nigeria, Mexico and Brazil in no particular order. The report by PwC projects the economy of the UK will fall behind a number of emerging markets as the growth rate of the GDP continues to fall from 2.3% to 1.8% between 2014 and 2050.
Philippines, Vietnam and Nigeria projections show high average growth rates of 4.5% to 5.5% annually all the way to 2050. On the other hand, Malaysia’s projected growth is put at 4%, higher than the growth rate average projection of China that stands at 3.5%. According to the chief economist in the PwC study, Europe has to raise its ante if it does not want to lag behind as the economic power around the world continues to shift akin to the type of world economy led by Asian countries prior to the Industrial Revolution.
According to the report, it is expected the US could hold up well if it remains at the top of the world technologically and the UK might just perform well if it continues opening up to trade, ideas, people and investment by the standards of G7.
Nonetheless, the report by PwC also has a disclaimer stating that for the upcoming and countries that are now up their governments have to keep pursuing very sensible policies economically so that they can benefit from the projected growth. The latest official data in the UK has also revealed that industrial production went down unexpectedly by the end of 2014 in December and fell by 0.2% on that month. This came at the backdrop of an expected 0.1% boost by economists in the area of production from November all the way to December 2014.
The reasons cited include jitters after the Eurozone seemed to have returned to a good health after the productive sectors of the UK were subdued together with a steep drop in North Seas’ gas and oil production brought about by the collapsing prices of oil globally.
The figures also indicated that the economic recovery of Britain seems to have fizzled out by the end of 2014 and means that the economy expansion is a worrying issue and might remain very unreasonably services and domestic driven.
Ahead of the general election, GDP predictions are expected to be cheered. This is very much so considering that NIESR has already predicted unemployment will be falling rapidly than it was expected previously, dropping from the current level of 5.9% to about 5.2 % by the end of 2015, equated to over 200,000 additional people finding employment.