The UK has slipped below France this year in the World Economic League Table (Welt), which tracks the size of economies around the world and forecasts how this might change in the next 15 years.
This fall was due to the large fall in the sterling exchange rate following the vote to leave the European Union, but Welt has predicted that it will catch up with France by 2021.
Douglas McWilliams, president of the Cebr, which carried out the research, said the table tracked “the pace of globalisation as the former leading economies from the West get overtaken by fast growing emerging economies.”
By 2024, India will become the third largest economy, overtaking the UK and France in 2018, Germany in 2021, and Japan in 2024. South Korea, Indonesia and the Philippines were all forecast to grow much larger by 2030, with Korea overtaking the UK and France to become the seventh largest economy by 2030.
China is also predicted to overtake the United States in 2029 as the biggest economy in the world, despite a slowdown and big infrastructure plan spearheaded by president-elect Donald Trump. It forecast that this plan would only have an impact on the economy by 2018 or 2019.
Chris Blythe, chief executive of The Chartered Institute of Building, said: “New trading agreements with the Asian powerhouse economies of China and India and with the US along with nations such as Australia could help unlock growth opportunity for Britain’s infrastructure and construction sector”.
For the first time, the league table has covered every country in the world except Syria.