By Axios staffA look at UK GDP as a whole in the year ahead, according to a study by the Boring Group.
The Boring group, which advises clients on emerging markets and emerging markets-focused firms, said it expects the UK to expand to become the world’s second-largest economy in 2020, ahead of China.
It said that is the result of rising productivity, greater demand and the rise of digital technology.
The UK’s economic performance has been “a major catalyst” for the UK’s growth, said Boring head of research David Stuckey.
The group said the UK has a high level of debt, but said its debt-to-GDP ratio, which measures how much money a country’s government borrows from private banks, is still below that of France.
“We see a growing focus on financial innovation and are seeing the UK becoming the new ‘first in, first out’ world of finance,” said Stuckeys.
“The UK is a leading financial centre and has the ability to absorb all the new innovations and opportunities that are coming from China and elsewhere.”
The Boreys report said the US had surpassed Germany as the world leader in financial services in 2020.
In addition to the UK, the report noted China has overtaken Germany to become China’s biggest trading partner.
It added the US was “on track” to surpass Germany and Japan.
The world’s fastest growing economy has been expanding at an “exceptionally fast” pace, according the Boreies.
The British economy is expected to grow by 2.4 percent in 2020 as a result of the new financial services sector and the continued strong economic recovery, it said.
