Europe ‘acted rapidly in financial crisis’ says Macron
The claims were made in a report by the Centre for Economics and Business Research, which issued its long term forecasts for the UK in the global economy. It said the UK would retain its status as the world’s fifth-largest economy, and also places Britain near the top of global growth league tables until 2035. In fact, by 2035 the report suggests the UK economy will be 23 percent bigger than France’s.
“We have a huge competitive advantage in this tech-based sector which the pandemic has kicked forward. Most of this is pretty Brexit-proof provided the UK continues to attract talented people.”
The economists behind the report also said the UK will outperform many countries in Europe.
They added: “‘The UK economy continues to be one of the better performers in Europe despite Brexit.”
Mr McWilliams also commented on the coronavirus pandemic, saying that the world economy could recover – but in turn pose the threat of inflation.
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He added: “We think that when the vaccine rolls out, the world economy could bounce back quickly.
“My colleagues have calculated about £200billion of savings in the UK as a result of the pandemic that is waiting to be spent. There will be similar build-ups of savings elsewhere.
“We are more worried that a rapid bounce-back will lead to inflation, with shortages pushing up prices.”
COVID-19 cases are beginning to decrease in the UK as lockdown measures hold back the virus, but it is also having another big economic effect.
The UK is headed for a ‘double-dip recession’ as the services sector – accounting for 80 percent of the economy – has seen its activity dropped from 49.4 in December to 38.8 in January, as highlighted by the IHS Markit/Cips purchasing managers index.
Anything below 50 percent indicates an economy is shrinking.
The French economy has also been hit hard as President Macron starts to look ahead to the 2022 elections.
In 2020, the coronavirus pandemic slashed total output in France by 8.3 percent, official figures showed today.
Mr Macon’s government initially predicted that the French economy would shrink by 11 percent.
The downturn last year marks its worst recession since World War 2.
The German economy managed a growth of 0.1 percent, better than the zero percent forecast by economists, while Spain defied expectations of a 1.5 percent contraction to grow by 0.4 percent.
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But the impact of the pandemic could still result in division, a historian told Express.co.uk last year.
David Marsh, an expert on the eurozone, said the pandemic could even see the monetary union split.
He said: “Sometimes crises lead to people coming together more – there’s the old adage that Europe is ‘forged in crises’.
“But of course you can have a crisis too far, and some crises end in the whole thing – in this case monetary union – blowing up.
“I think both of these possibilities are out there, and it’s difficult to tell which one is more likely.
“There is a chance the whole thing will come to an end, because the legitimate demands of the southern states won’t be possible for the northern states to meet, which could conceivably lead to a southern state leaving.
“The northern states could even depart as a bloc.”
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