According to some analysts, the British economy is on the move. Bloomberg predicts that in the long run, particularly over the next 15 years, the UK will outperform its struggling European peers, securing its place among the world's leading economies.

The Center for Economics and Business Research (CEBR) expects the UK and France to remain in sixth and seventh place respectively by 2039, while Germany, Italy, and Spain are predicted to slip down the rankings.

CEBR analysts suggest that this optimistic outlook is likely to be welcomed by British Prime Minister Keir Starmer, especially after recent official data showed that the UK economy has failed to grow since the Labour Party came to power under his leadership.

“While this outlook is markedly better than key European peers like France and Germany, both of whom are expected to slip, this reflects a relatively poorer outlook for Eurozone economies rather than strong UK growth,” CEBR pointed out.

In the fourth quarter of 2024, the UK economy showed signs of stagnation, with many experts predicting continued weakness in 2025.

Nevertheless, Starmer remains hopeful that his plans to achieve rapid, sustained growth within the Group of Seven, driven by reforms in planning, housing construction, and public investment, will bear fruit. However, CEBR analysts point to significant challenges hindering the UK's economic expansion.

Many experts predict that Britain will narrow the gap with the underperforming German economy over the next 15 years. However, the CEBR allows for the possibility that Europe’s largest economy will outpace the UK's by 20% by 2039. Currently, the gap stands at 31%. According to preliminary projections, the UK will overtake France by 2039, with output 25% higher.

The CEBR also warns that tax hikes under the Labour government could dampen economic growth in the short term. Over the long-term horizon, however, the trend growth rate is expected to improve slightly, reaching 1.8%.

As for the financial indicator per capita in the UK, it is forecast to rise one position, placing the country in 21st place, just behind Malta, Germany, and Sweden. Luxembourg is expected to maintain its status as the world’s wealthiest country per capita.