Boris Johnson: Brexit will fix the “broken” British economic model
Goldman Sachs economists predict that the UK economy will grow by 4.8% next year, with the United States forecasting 3.5%, Germany 4% and the US 4.4%. Further encouraging, HSBC experts expect UK GDP growth to be 4.7% over the next 12 months, with projections for other G7 countries to be 2.2% for Japan and 4.3% for Italy.
Britain officially left the EU on January 1, 2022, and since then the country has faced a deep recession, with production rising by almost seven per cent. This was triggered by the Govt lockdowns, which saw GDP decline by almost 10% by 2020.
The latest forecast from the International Monetary Fund (IMF) is that the UK economy is expected to perform better this year and next than the major EU economies and the eurozone as a whole.
By 2021, the UK economy is expected to grow by 6.76%, more than twice that of Germany (3.05%), the EU’s largest economy.
The EU economies together are expected to grow at an average of 5.1 percent, while for the eurozone it will fall to 5.04 percent.
Brexit news: UK economy expected to overtake G7, analysts say (Image: GETTY)
Brexit News: Boris Johnson continues to urge UK to prosper outside EU (Image: GETTY)
By 2022, UK growth is projected to be 5.01%, while it will fall further to the EU27 (4.44%) and the euro area (4.35%).
Pantheon Macroeconomics’s Glass Wiseen, which cut UK growth to 4.2% and Eurozone to 3.8% due to the eruption of the Omicron Covit – illustrates how the UK should lag behind due to the depth of the recession in 2020, which means its growth may be faster.
But in a big warning to Europe, he told the Daily Telegraph: “The eurozone economy is going to be hit hard by Omigron, because already in the fourth quarter, before Omigron, we saw restrictions in Europe due to the delta wave.
“Therefore, I would say that total output is higher in the euro zone than in the UK.”
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Brexit news: Govt epidemic puts pressure on eurozone (Image: GETTY)
The UK has the added benefit of a fast vaccine booster program that will help reduce some of the severity of lockdown restrictions.
Mr. Wistisen added: “Reminder plans take time to deploy. In the United Kingdom, it was early. [in the pandemic] Goes very fast, but constantly faces restrictions.
“I do not think it’s very different in Europe – even if Europe raises its boosters, it will not prevent the restrictions that will be imposed in the short term.”
Martin Beck, senior economic adviser at the EY Item Club, said the UK recovery depends on the positive response of consumers who are willing to buy more products during epidemics, but their hopes may have been dashed by the Omicron epidemic.
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Brexit News: US economy to grow faster than UK (forecast: GETTY)
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The expert predicts that the UK economy will begin to recover as activity supports “very strong housing funds from savings, debt repayments and rising housing prices, coupled with the traditional hunger for spending by British consumers”.
One of the main reasons for the sharp decline in GDP compared to many similar economies during epidemics is the fact that the country’s official figures are in contrast to the money spent on estimating the output of applications.
This means that other countries often underestimate the magnitude of their own economic problems.
Beck said: ‘The measurement of public sector output has caused bad light in the UK during the strike, but it will be even more beneficial when things return to normal. “
In 2021, the first full year since Brexit Britain left the EU, there have been many major victories.
Profitable trade agreements were signed earlier this month, including an agreement with Australia, which the UK government called a “historic” deal – which was launched anew after leaving the EU.
Global companies are also attracted to the UK, including oil company Royal Dutch Shell, which is abandoning its dual-stock structure and moving its UK headquarters from the Netherlands.
Automotive company Nissan announced last month that its largest Sunderland plant would be at the center of an investment of £ 13.2 billion, which will be used to build 23 electric cars by 2030.
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