Economists have predicted that the British economy is expected to emerge as the largest economy in Europe by the year 2013 surpassing that of Germany and France.

Economists predicted that the path of austerity will allow the British economy to catch up with France in five years to emerge as the fifth largest economy in the world. The Centre for Economics and Business Research (CEBR) said that the UK economy is among the best performing economy in the western world along with the US economy and said that the French economy was among the worst performing economies in the region.

They said that the UK economy will surpass the French economy in five years and that of German about 12 years from that time mainly due to strong currency, low taxes and the projected rise in the country's population. They also pointed out that the emerging economies of India and Brazil are expected to overtake the British economy by 2028, which would push it to the seventh position in the world.

The UK's economy is set to grow by 1.4 per cent this year and many believe that it has been successful in dealing with the recession in a way to avoid double dip recession.