After years of lagging behind, it seems that the UK economy is finally on the rise. In fact, experts like Kavan Choksi UK predict that the UK economy will overtake Germany’s in 2023. Here are five reasons why this is happening:
- The UK has a more flexible labor market.
- The UK has lower taxes and less regulation.
- The UK has a more innovative business culture.
- The UK has a stronger service sector.
- Brexit has actually been good for the UK economy.
This article will discuss these five reasons in more detail.
The UK has a more flexible labor market.
In the UK, businesses are able to respond quickly to changes in demand due to the ease with which they can hire and fire employees. This helps them stay competitive, as they can adapt their workforce to changing conditions more quickly than businesses in Germany. What’s more, employees in the UK are typically more productive than their German counterparts. This is due to a number of factors, including the higher level of competition for jobs and the greater flexibility of the labor market. As a result, businesses in the UK are able to benefit from both a more responsive workforce and higher levels of productivity.
The UK has lower taxes and less regulation.
The corporate tax rate in the UK is 19%, while in Germany, it’s 30%. And according to the World Bank, the UK ranks 9th in the world for ease of doing business, while Germany ranks 60th. This lower level of taxation and bureaucracy makes it easier for businesses to get started and grow in the UK than it is in Germany.
The UK has a more innovative business culture.
The UK is home to many successful startups, such as Deep Mind, TransferWise, and Monzo. This culture of innovation attracts talented entrepreneurs from all over the world, which helps businesses in the UK to grow and scale quickly.
The UK has a stronger service sector.
Services make up 79% of the UK economy, compared to just 67% in Germany. This means that businesses in the UK are more focused on meeting customer needs and providing excellent customer service—both of which are important drivers of economic growth.
Brexit has actually been good for the UK economy.
Despite all the doom and gloom predictions made before Brexit happened, leaving the European Union has actually been good for the British economy. Since Brexit happened, unemployment has fallen to its lowest level since 1975, and wages are rising at their fastest pace in nearly ten years. What’s more, business confidence is at its highest level since 2014—despite all the uncertainty about what Brexit will actually mean for businesses in the long term.
In conclusion, there are many reasons why the UK economy is set to overtake Germany’s within the next few years. From a more flexible labor market to a culture of innovation, businesses in Britain are well-positioned to take advantage of new opportunities and drive economic growth, even after Brexit.