Britain back with bang on economic ladder

{image-UK economy_06012008.jpg news.oneindia.in}London, Jan 6: Second industrial revolution made Britain play second fiddle to the US in terms of living standards, but the new year is all set to bring ''prosperity'' back in the lap of the United kingdom.

According to a report by Oxford Economics consultancy, for the first time since the 19th century, living standards in Britain are set to rise above those in the US, thanks to the changes in the gross domestic product (GDP) per capita. The calculations, quoted by the Times, state that GDP per head in Britain will be 23,500 pounds this year as against 23,250 pounds in the US, citing the strength of the pound against the dollar and also the rising income levels.

Looking at the changes, where average income in Britain has crept above that in the US, Oxford Economics Managing Director Adrian Cooper said, ''The past 15 years have seen a dramatic change in the UK's economic performance and its position in the world economy. No longer are we the 'sick man of Europe'. Indeed, our calculations suggest that UK living standards are now a match for those of the US.'' Not only the currency fluctuations, but longer-term factors also brought these changes. The UK has been catching up steadily with living standards in the US since 2001, the report added.

The lower prices are the main reason behind the more spending power of the average American whereas the rising oil prices and energy bills are squeezing Britons' incomes.

UNI