In just a decade, the UK’s economy could find itself closer to Guyana than the US, according to new warnings from economists. Despite the government’s promises to improve living standards, the Centre for Economics and Business Research (CEBR) predicts the UK’s GDP growth will be one of the weakest among the world’s leading economies.
By 2029, Britain is set to stay in 22nd place for GDP per person, even being overtaken by smaller countries like the UAE and Malta. Fast forward to 2039, and the UK’s GDP per head will likely be around $86,141, just a little ahead of Guyana’s $78,695. Meanwhile, the US is expected to be far ahead at $148,411 per person.
So, what’s causing this slowdown? A lack of productivity growth, especially in public services, is holding the UK back. Economists warn that unless things change, the UK risks falling into a pattern of stagnation, while countries like the US continue to thrive, driven by high productivity and deregulation.
Even though Prime Minister Sir Keir Starmer has pledged to boost living standards, it’s clear the UK faces a tough road ahead. While rising welfare spending and higher taxes may keep the state running, it’s clear that raising productivity is key to turning things around.
With other nations, like Ireland, surging ahead thanks to low taxes and high productivity, the UK will need to act fast if it wants to stay competitive on the world stage. The race is on – and the UK might be trailing behind.
