Booming tech investment, undertaking Thatcher era reforms and contemporary measures by the government could put the British economy on an upward trend if realized at their true potential.
After going through the economic shock of “Brexit”- which cost it 10% of its business and facing the gloom of pandemic with the rest of the world, due to which the economy shrank by 9.4%. The growth prospect of Britain dwarfing France’s economy by 16%, by 2036 comes as a paradigm shift from the expectations.
The UK is the world’s fifth-largest economy, worth £2.1 trillion with a per capita GDP of £36,357. There was much speculation regarding the post-Brexit state of the UK economy, the most prevalent of all was the relocation or exodus of jobs from the UK. Due to changes in various laws which were a part of the EU but not the UK. Hence the latest forecast by the Centre for Economic and Business Research (CEBR), which predicts that the economy of the UK would be on an upward trend, exponentially against its former EU compatriot -France is much appreciated by banking and other highly qualified officials.
This dynamic growth of the economy is supported by two major pillars – Tech Investment, which is more than both France and Germany put together- is considered to be an aggressive factor for the supposedly vast scaling of the economy. And during the Thatcher Era economic reforms, the tech investment of Britain is considered somewhat similar to that of the Thatcher era of Germany where the focus was on car manufacturing and so on, which left a hefty legacy in the German economy.
While among all the gold and glitter regarding the fruitful futuristic growth prospects. The mask of worry is worn by the UK offices while depicting the contemporary growth trends, highlighting a slow growth and recovery process. Which is seen as a sign of fading momentum even before another coronavirus wave has struck.
Even though tech investments have gained pace, the declining business investment despite the investment promoting reforms undertaken by the government could delay the recovery of the economy after two hard-hitting events.
The British economy is already on a growth trend though, a balance is needed so that all the sectors could contribute to achieving the potential growth rate. But it also needs to undertake policies with respect to the possible onslaught of the new coronavirus variant – omicron, which could push its growth target to a later date.