British economy will be biggest in Europe in four decades

Original post by paniking_and_not_revising

Surely the German economy is stronger than ours? Do we even produce things anymore?

Why produce things when we can sell services instead? Manufacturing doesn't necessary mean a strong economy.

We still do produce things though, we're the ~6th largest producer of goods in the world. Germany's manufacturing output is just stupidly large. Only the US's is bigger than theirs.

Reply 21

Organ

13

Original post by MacCuishy

First thing positive about the UK economy I have seen in my entire life

Maybe you should pay more attention to economics then?

Reply 22

paniking_and_not_revising

OP

21

Original post by Joluk

Why produce things when we can sell services instead? Manufacturing doesn't necessary mean a strong economy.

We still do produce things though, we're the ~6th largest producer of goods in the world. Germany's manufacturing output is just stupidly large. Only the US's is bigger than theirs.

How do you sell services? I thought you could only sell a product?

Original post by FDR

Someone at the Daily Mail is going to be in trouble for letting this get published..... :bricks:

Reply 23

geetar

16

I don't think you can predict with any degree of accuracy what it will be like in four decades time. Journalism is mostly speculation.

Reply 24

Organ

13

Original post by tehFrance

Germany and France are tied into the EU and if it is not sorted out then the UK will most likely leap frog both countries however if it is and no problems of this scale arise again in the Eurozone then I doubt that the UK will leapfrog them as the DM says.

Also any other source than DM, I am sceptical of them.

There have been loads of these forecasts, and by all accounts, long-term the UK is set to overtake Germany by 2050.

It isn't a Daily Mail study anyway - it is Goldman Sachs. Go to page 9.

Reply 25

Profesh

20

Original post by paniking_and_not_revising

How do you sell services? I thought you could only sell a product?

Services are a form of product.

Reply 26

lankymanky

I could see the UK economically surpassing France but economically surpassing Germany is quite a bold claim.

Reply 27

pol pot noodles

19

Original post by paniking_and_not_revising

How do you sell services? I thought you could only sell a product?

A service is a product. Just because it isn't physical doesn't change that fact. I don't see the infatuation with manufaturing that some people have. Why do you deem making a million pounds from making and selling cars as somehow more worthy than making a million pounds from selling financial services or legal advice?
Infact our service sector has a positive balance of trade, compared to our industrial sector which has a huge deficit in trade.

Reply 28

viffer

16

Original post by paniking_and_not_revising

How do you sell services? I thought you could only sell a product?

Consultancy, HR/Payroll services, web design, marketing, delivery are a few examples of services a company can buy.

Reply 29

paniking_and_not_revising

OP

21

Original post by viffer

Consultancy, HR/Payroll services, web design, marketing, delivery are a few examples of services a company can buy.

Ah that clears it up thanks!

Reply 30

Snagprophet

17

I hope it's right, perhaps India, China, Germany and Japan's push forwards economically will diminish.

Reply 31

Planar

15

Original post by paniking_and_not_revising

Surely the German economy is stronger than ours? Do we even produce things anymore?

Why do people always wheel that out when it comes to Britain's economy? We do not produce many physical things anymore because we've largely passed that stage. The developing economies are catching up on everyone, and they will get to manufacturing expertise long before they get to services expertise. Germany specialises in the former, and we in the latter. We are better placed in the long term than Germany, and I wish people knew that - I also wish they knew that manufacturing is not the answer to all of our economic problems.

Reply 32

JOR2010

14

It's that reliable old source again, the Daily Mail! Why not just ask a damp rock?

Reply 33

Planar

15

Original post by Unknown?

You people start taking crap from the daily mail serious now?

It's a Goldman Sachs report, it says so clearly

Reply 34

Organ

13

Original post by JOR2010

It's that reliable old source again, the Daily Mail! Why not just ask a damp rock?

Read the article. It is quoting a Goldman Sachs report that I posted.

Reply 35

JOR2010

14

Original post by Organ

Read the article. It is quoting a Goldman Sachs report that I posted.

I notice that now, but it still throws up some interesting speculation. German and French economies will be behind that of the UK? Surely the only way for German to fall behind is if manufacturing goes, and surely China cannot sustain such growth - and then overtake the US? It's an interesting prediction, but predicting 40 years ahead is not wise.

Reply 36

Altruistic1

The forecasts are based on assumptions which are notoriously unreliable. Economists are shocked by what happens 6 months ahead, let alone 40 years. Goldman isn't renowned for it's economics dept anyway, not since Jim O' Neill left.

To those saying we're a manufacturing country - no, we're not. We are and will lean more towards services because of the way our institutions have developed historically. E.g. low Trade Union power = easier hiring/firing; flexible labour force = easier poaching of top-level management = firms invest less in developing the knowledge of their employees = we as a nation fail at 'knowledge-intensive' manufacturing

Reply 37

TurboCretin

20

Original post by Joluk

Why produce things when we can sell services instead? Manufacturing doesn't necessary mean a strong economy.

We still do produce things though, we're the ~6th largest producer of goods in the world. Germany's manufacturing output is just stupidly large. Only the US's is bigger than theirs.

And China's.

Reply 38

Aj12

18

Original post by Unknown?

You people start taking crap from the daily mail serious now?

if its based on sound predictions then where it comes form does not matter. This is not some guy at the Dm pulling things outta his ass but basing it on predictions from economists.

How reliable those economists are is a whole other question though....