Economic forecasts for 2050 predict that the UK will remain a top ten global economy and that its economic growth is likely to outpace the growth of major European Union countries such as Germany, France and Italy. The country’s economic growth potential is however likely to be hampered, at least in the short term, by the impacts of Brexit and the coronavirus pandemic. Forecasts for 2050 by PwC do however predict that the UK is likely to fall from 5th to 9th place in the global economic rankings by the time of 2050. The UK’s position in the global economic rankings is expected to be buoyed by their larger than average share of working-age population when compared to other top ranking countries.
The countries continued economic strength will be reliant on their ability to continue to attract and retain top talent however, with some fearing that there may be an exodus following Brexit and a reduction in immigration from skilled workers. Successful trade relationship with major emerging markets like China (which has already overtaken the USA as the world’s largest economy) and India will also be key to the UK’s success in the future. India is expected to also overtake the US in the world’s economy ranking by 2050. Predictions for 2050 also show that Indonesia is likely to overtake the UK and other major markets such as Germany, Japan, Brazil and Russia.
By the time of 2050 it is expected that the E7, Brazil, China, India, Indonesia, Mexico, Russia and Turkey may represent close to 50% of the world GDP.
Even if Brexit had not happened the UK would have needed to rely on these emerging markets for growth. Now that the UK has broken away from the EU, strong trade relationships with the E7 will be even more important going forward.