UK Economic Research Center: The UK economy will outperform its European counterparts in the next 15 years.

According to long-term forecasts, in the next 15 years, the performance of the UK will surpass its struggling European counterparts, helping it maintain its position as one of the world's largest economies. The Centre for Business and Economic Research (CEBR) predicts that by 2039, the UK and France will remain in sixth and seventh place respectively, while Germany, Italy, and Spain's rankings will decline. This optimistic assessment will be welcomed by UK Prime Minister Keir Starmer, as official data earlier this week showed that the UK economy has failed to grow since his Labour government took office in July. Survey data suggests that the recent downturn is expected to continue until 2025. Starmer hopes that his plans for lightning-fast reforms, housing construction, and public investment will achieve the fastest sustained economic growth among the G7 countries, ultimately yielding returns after a difficult start for Labour. However, CEBR believes that challenges will continue to hinder the UK economy. CEBR states, "While this outlook is clearly better than major European countries like France and Germany, it reflects the relatively poor prospects of the Eurozone economy rather than strong growth in the UK economy." CEBR predicts that the UK will narrow the gap with the underperforming German economy over the next 15 years. By 2039, the largest economy in Europe, Germany, will be 20% larger than the UK, compared to the current 31%. Similarly, by 2039, the UK's output will surpass France by 25%. The institution predicts that the US will maintain its position as the world's largest economy. CEBR warns that Labour's tax hike policies will mean a slowdown in economic activity in the short term, but expects the long-term trend growth rate to reach 1.8%. On a per capita basis, the UK is expected to rise slightly to 21st place, behind only Malta, Germany, and Sweden. Luxembourg is still expected to be the richest country in the world per capita, followed by Ireland and Switzerland.