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UK Tipped to be Largest European Economy
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Finance experts have recently forecast that in 16 years time the UK could be the largest European economy. This will be driven by population growth and relatively low taxation by European standards. In contrast France, who has just approved a 75% tax rate for high earners, is predicted to become one of the worst performing economies.

In Europe just 7% of the world’s population live, but Europe’s economy is 25% of the world’s economy, although this figure is predicted to fall by 50% over the next fifteen years. This is partly illustrated by the fact that Europe’s share of world patent applications has halved over the last ten years.[divider]

The UK is leading the way to encourage new entrepreneurs

Armed with this information the UK is urging Europe that we need to do more to encourage more entrepreneurs to develop new industries now and in the future to help maintain our share of the economy. This will also drive job creation, something extremely important when you consider that today a quarter of our young people in Europe cannot find jobs. This is a problem that needs to be addressed quickly in order to improve it, otherwise it will just get worse.

Although the above figures show that Europe performs well by world standards an interesting statistic is that 50% of all world welfare is provided in Europe! This is an interesting statistic and it is hard to say whether it needs to be addressed or not. However if we are going to be able to afford to pay this level of welfare we need new industries, therefore we first of all need more entrepreneurs.[divider]

Rising house prices, low interest rates and increased mortgage activity

In Britain in the last quarter of 2013 the number of mortgages increased by 26%. House prices increased in the year by 5.4%. These figures are boosted by higher increases in London and the South East, but even if we remove these parts of the UK from the figures, the rest of the country still experienced an average price rise in residential property values of 3.1%.

Forecasts for 2014 anticipate overall price increases of between five and eight percent. With inflation on target and a strong pound it is hoped the economy will continue to improve. Interest rates should continue to stay low as no financial experts expect any increase in the current year.


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