The United Kingdom seems to have officially lost its coveted spot on the list of the world's five largest economies. And for the first time since 2013, it is France that enters the top five.
At the UK Budget on Wednesday, Philip Hammond, head of the Treasury, in a series of statements to highlight the strength and health of the UK economy, admitted that the country had slipped to sixth place behind France.
"Britain is the sixth largest economy in the world," Hammond said in his budget speech.
Although there are many ways to measure the size of an economy, the UK Treasurer has taken into account the GDP forecasts released by the International Monetary Fund in October.
The figures show that France will narrow the gap in Britain in the 2017 ranking of world economies, with an advantage that should widen considerably in 2018.
The other four countries that make up the ranking are the United States, China, Japan and Germany.
Hammond admits that British growth and production forecasts have been reduced, but he also revealed, "Britain is the sixth largest economy in the world."
"London is the number one international financial services centre," the Chancellor said. "We have some of the world’s best companies."
"And a commanding position in a raft of tech and digital industries that will form the backbone of the global economy of the future. Those who underestimate Britain, do so at their peril."
There are many ways to measure the size of an economy. According to World Bank data, classified by gross domestic product for 2016, the United Kingdom has still easily surpassed France with a GDP of $ 2.618 billion. But according to IMF forecasts for 2017, France has leaped ahead of the United Kingdom.
London financial district Source: pixabay/AlexVan
The decline reflects a sharp deceleration in Britain's economic growth since it voted to leave the European Union in June 2016. The pound has weakened dramatically, consumer spending has slowed, and prices have fallen.
On Wednesday, the Office of Budget Responsibility reduced its growth forecast in the UK for 2017 from 2 per cent to 1.5 per cent. It expects an expansion of 1.4 per cent next year, followed by 1.3 per cent in 2019 and 2020.
The loss of this fifth place against a European rival is another bad news for politicians who say that Britain will be stronger thanks to Brexit.
The United Kingdom should continue to lose positions in the rankings and could be ranked 10th in the list of the world's largest economies by 2050.
India is expected to overtake Britain and France by 2019.
Australia, which had fallen from 15th to 12th place between 2005 and 2014, is now in the 13th place since 2015. With a 1.359 trillion dollar economy, the IMF forecasts a steady rise to 1.709 in 2022. (knoema.fr)
The world's seven largest economies, according to the IMF's 2017 forecast (CNN):
United States - $ 19.4 trillion
China - $ 11.9 trillion
Japan - $ 4.9 trillion
Germany - $ 3.7 trillion
France - 2.575 trillion
United Kingdom - $ 2.565 trillion
India - $ 2.4 trillion
Australia - $ 1.3 trillion
