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Business

France to slip behind UK in GDP ranking, study says

Text by Tony Todd

Latest update : 2012-12-27

France is set to fall behind the UK in terms of GDP in 2013, according to an annual report by a leading British economic think tank, which shows emerging economies such as India and Brazil rapidly accelerating.

The UK is set to overtake France on the World Economic League Table, according to an end-of-year report published by a leading British think tank.

The report, produced by the London-based Centre for Economics and Business Research (CEBR), puts France in 6th place, with the UK moving up to 5th in 2013, measured according to projected GDP.

The report's authors put France's flagging performance down to "the economic effects of President Hollande’s 75% tax policy and the difficulties of the euro."

The UK and France remain neck-and-neck however, with French GDP predicted at 2,540 billion dollars in 2013 against Britain's 2,578 billion.

The UK last overtook France in 2007, before falling back again because of a weak pound and a double-dip recession.

According to the CEBR's head of macroeconomics, Charles Davis, France dropping behind is not simply a case of Paris mismanaging its economy, but rather a sign of "wider malaise across the eurozone", from which the UK is by no means immune.

High growth in Brazil and India

It is the emerging markets, and in particular countries like India and Brazil, that are set to climb the ladder in the report's longer-term predictions.

India is set to go up from 10th to 4th place by 2022, while Brazil will go from 7th to 5th.

The top three - the US, China and Japan - are predicted to stay in the same order, although China will move much closer to the top with a more than doubled GDP of 19,516 billion dollars against 23,496 billion for the US.

European economies are all projected to go down the list, with the UK dropping from 6th to 8th place, France falling from 5th to 9th and Italy from 8th to 13th.

"The global picture is one of global change, especially in emerging markets which are enjoying high, robust growth," Davis told FRANCE 24. "At the same time economies like the UK, France and Italy are falling behind.

"It is absolutely essential that European economies understand this rapid rise of emerging markets and the need to change policies in order to boost exports and remain competitive on the world stage."

Date created : 2012-12-27

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