UK set to become world's fifth-largest economy by 2040, but living standards slip

"The UK is on course to overtake Japan and become the world's fifth-largest economy by the end of the next decade, according to new long-term projections from Centre for Economics and Business Research (CEBR). In its latest global outlook, the think tank forecasts that Britain's gross domestic product will rise from just under $4 trillion in 2025 to around $6.8 trillion by 2040, lifting the country back into the global"

"The projections suggest the global economic hierarchy will continue to shift eastward. The United States is forecast to remain the world's largest economy by 2040, with GDP of about $53 trillion, but China is closing the gap rapidly and is expected to reach just under $48 trillion. On purchasing power parity measures, which adjust for price levels and exchange rates, China has already overtaken the US, and CEBR now expects it to surpass the US on headline GDP measures by 2045, earlier than previously anticipated."

Projections place the UK as the fifth-largest economy by around 2040, with GDP rising from just under $4 trillion in 2025 to about $6.8 trillion. The global economic hierarchy continues to shift eastward: the United States is expected to remain largest at roughly $53 trillion while China approaches about $48 trillion by 2040. China has already overtaken the US on purchasing power parity and is forecast to surpass the US on headline GDP by about 2045. India is expected to become the third-largest economy by 2040, Japan to fall to sixth, Germany to remain fourth, and Indonesia could enter the top ten in the early 2030s. UK GDP per capita is forecast to rise from around $57,000 to $89,000 by 2040.

Read at Business Matters