UK Crashes Out Of Top 5 Economies

Tarang Khurana

In a Budget speech on Wednesday, Britain’s treasury chief Phillip Hammond announced Britain as the world’s 6th largest economy.
The year 2016 saw two big economies of the world pulling off something unprecedented, first one being the infamous Brexit by the then Britain PM David Cameron and the other was Demonization by India's Narendra Modi. But it was the year 2017 which saw the substantial effect of both these moves.

GDP is the strongest measure of an economy as it is the sum of market values, or prices, of all final goods and services produced in an economy during a period of time. It is confirmed that Britain will lose the 5th spot.
Eventually and relatively it looks as if Demonization came out to be a better move as the most prominent reason for UK to crash out of the top five economies is Brexit and the trends forecast that India will surpass both Britain and France and enter the top 5.

The numbers here speak quite clearly, Britain's GDP witnessed a good rise in the last 3 months of 2016 it grew 0.7% up from 0.6% previously, but gradually trade and housing market started declining in 2017 resulting in a fall in the GDP. Even the pound fell after the Brexit vote. This made tourism expensive in Britain and import costs increased substantially. The weaker pound against the dollar resulted in a drop in the economy.

Here are the world's top seven economies, according to the 2017 IMF forecast:

U.S. - $19.4 trillion
China - $11.9 trillion
Japan - $4.9 trillion
Germany - $3.7 trillion
France - $2.575 trillion
U.K. - $2.565 trillion
India - $2.4 trillion