Boris Johnson: Brexit will fix the “broken” British economic model

Economists at Goldman Sachs predicted the UK economy to jump 4.8% next year, easily easing the 3.5% forecast for the United States, 4% for Germany and 4.4% for the United States, giants of the European Union, France and Italy. left behind. In another boost, HSBC experts expect UK GDP growth to be 4.7% over the next 12 months, with the forecast for the rest of the G7 countries at 2.2% for Japan and 4.3% for Italy.

Britain officially left the European Union on January 1, 2022, and has since increased production by nearly seven percent as the country grapples with a deep recession. This was triggered by the Covid lockdown, which saw GDP fall by almost 10% in 2020.

The latest forecast from the International Monetary Fund (IMF) also shows that the UK economy is expected to outperform major EU economies and the euro area this year and next year.

By 2021, the UK economy is expected to grow at 6.76%, more than twice that of Germany (3.05%), the largest EU economy.

The EU economies combined are expected to grow 5.1 percent, while for the euro area the number falls even further to 5.04 percent.

Brexit news: Britain’s economy expected to overtake the G7, say analysts (Image: GETTY)

Brexit news: Boris Johnson insists the UK will thrive outside the EU (Image: GETTY)

By 2022, the growth of the United Kingdom is projected to be 5.01%, while it falls again for the EU27 (4.44%) and the euro area (4.35%).

Claus Wiestesen of Pantheon Macroeconomics – who slashed UK growth to 4.2% and the eurozone by 3.8% due to the Omicron Covid outbreak – highlighted how the UK will need to hold onto its backwardness in 2020 as the depth of the recession is required, which means that its growth may be rapid.

But in a big warning for Europe, he told the Daily Telegraph: “The eurozone economy is probably going to be the hardest hit by Omicron because already in the fourth quarter, before Omicron, we saw sanctions in Europe because of the delta wave .

“So I would say that the total output will probably be larger in the Eurozone than in the UK.”

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Brexit news: The COVID pandemic has put enormous pressure on the euro area (Image: GETTY)

The UK has the added benefit of a rapid vaccine booster program that could help limit the severity of lockdown restrictions to some extent.

Mr. Wisteson said: “Remember programs take time to be implemented. The United Kingdom, as it is at the beginning [in the pandemic] Goes very fast, but continues to face restrictions.

“I don’t think it will be much different in Europe – even if Europe increases its boosters, which they are, it won’t stop the restrictions imposed in the short term.”

Martin Beck, senior economic adviser at EY Item Club, said the UK’s recovery depends on a positive response from consumers who are willing to buy more products during the pandemic but whose confidence could be dented by the Omicron pandemic.

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Brexit news: The US economy will grow at a slower pace than the UK, according to forecasts (Image: GETTY)

Brexit news: The UK signed a trade deal with the EU late last year (Image: GETTY)

The expert predicted that the UK economy should begin to recover as activity is supported by “very strong household finances from savings, loan repayments and rising house prices, combined with British consumers’ traditional appetite to spend”.

One of the main reasons that GDP has fallen so much relative to many other similar economies during the pandemic is that the country’s official figures go on to estimate the output of utilities as opposed to just the money spent on them.

This means that other nations have often underestimated the extent of their economic problems.

Beck said: ‘The public sector production measure has cast a bad light on the UK during the shutdown, but it will be a plus as things return to normal. ,

Brexit Britain also scored a number of major victories in 2021 in the first full year since leaving the European Union.

Lucrative trade deals were signed with Australia earlier this month in what the UK government called a “historic” deal – the first to start from scratch since leaving the European Union.

Global companies are also poised for the UK, including oil giant Royal Dutch Shell, which is abandoning its dual-share structure and moving its UK headquarters from the Netherlands.

Automotive giant Nissan announced last month that its massive Sunderland plant would be at the center of a £13.2 billion investment, in which the hub will be used to develop 23 electric cars by 2030.