Why Britain’s economy will overtake Germany’s (2024)

FAQs

Will Britain's economy overtake Germany? ›

Predictions from UBS chimes with the latest predictions from the International Monetary Fund (IMF), which has the UK outgrowing Germany in almost every year until 2028. The global watchdog also expects Britain's growth to outpace the eurozone in four of the next five years.

Among OECD members, the United Kingdom has a highly efficient and strong social security system, which comprises roughly 24.5% of GDP. The service sector dominates, contributing 82% of GDP; the financial services industry is particularly important, and London is the second-largest financial centre in the world.

High interest rates, skilled labour shortages and the country's famed bureaucracy have, say industry figures, plunged the sector into crisis. In 2023 insolvencies in the construction sector rose more than 20%.

After 1950, Germany overtook Britain in comparative productivity levels for the whole economy, primarily as a result of trends in services rather than trends in industry.

It means that the UK economy is now expected to have grown by 1.8% between the final quarter of 2019, before the COVID pandemic hit, and the second quarter of this year. That puts the country's economy ahead of both Germany (0.2%) and France (1.7%) during the same period.

Revised official statistics in September showed that the UK economy wasn't, contrary to earlier estimates, still smaller than prior to the pandemic. While the UK still lags behind the US on that score, and did slightly worse than France - it fared better than Germany.

The United States is the undisputed heavyweight when it comes to the economies of the world. America's gross domestic product in 2022 was more than 40% greater than that of China, the world No. 2. Even more striking, U.S. GDP was over five times that of the next two largest economies, Japan and Germany.

Impact of British Rule – Positive Aspects

Introduction of new technology and ideas: The introduction of new technology like steamships, telegraphs and trains completely changed the economic landscape of the Indian subcontinent.

In 2024, Luxembourg is the world's wealthiest nation by GDP per capita. Gross Domestic Product (GDP) is used to evaluate the economic prosperity of nations and their citizens globally.

Germany is struggling. It was the only G7 economy to shrink last year and is set to be the group's slowest-growing economy again this year, according to our latest projections. Some pundits say Germany's economic model is irreparably broken.

Does Germany have a strong or weak economy? ›

With a gross domestic product (GDP) of 4.121 billion euros in 2023, Germany is the third-largest economy in the world after the United States and China, and thus also the largest economy in Europe.

In 2024, Berlin will be in focus throughout Europe: The German capital is going to celebrate two charismatic events. In summer, the Olympic Stadium will host five matches and the final of the UEFA European Championship 2024.

Its lack of heavy bombers made it difficult to inflict strategically significant damage on British targets. The Luftwaffe's fighter force had no effective method of plotting the positions of Fighter Command aircraft and also lacked any means of ground-to-air control of its machines.

The decisive factors were British capability and determination, but German mistakes, before and during the battle, contributed significantly to the outcome. German rearmament was forbidden by the Treaty of Versailles at the end of World War I, but aircraft development continued under the guise of civil aviation.

It's almost impossible to compare because the German army was massivly more powerful than the British army but the Royal Navy was much more powerful than the Imperial Navy. Britain had its overseas empire but Germany was more industrialised and had a significantly larger population within its European mainland empire.

The UK economy is expected to be 10.2 per cent larger than France in 2033, this is forecast to increase to 19.9 per cent by 2038. In that same period, the gap between the UK and Germany — which is nearly a third larger than the UK — is expected to narrow slightly to 28.8 per cent.

The dominance of different industries in the three economies is the cause of the divergence in GDP growth. Unlike the UK, Germany never abandoned its manufacturing base and sells China everything from vehicles to manufacturing equipment to electrical machinery to industrial chemicals.

Both countries have a lot to offer, so it depends on what you are looking for in a country. If you want free tuition, affordable living costs, the ability to work while studying, and many job opportunities after graduation, then Germany is the place for you.