Boost for Tories as UK economy becomes second largest in the EU

BRITAIN has overtaken France to become the second biggest economy in Europe, figures showed yesterday.

The UK clocked up growth of .8 per cent in 014 – the strongest in the Group of Seven industrialised nations and seven times higher than France’s 0.4 per cent.

According to an International Monetary Fund report, this was enough for Britain to leapfrog socialist France and become the second most powerful economy in Europe, behind Germany.

The UK is expected to cement is position in the coming years as one of the fastest growing major economies in the West. The IMF is forecasting ‘solid’ growth of .7 per cent this year and .3 per cent in 016.

Despite a slight downgrade for 016 – the IMF’s initial forecast was .4 per cent – this is still enough for Britain to leave other EU nations trailing in its wake. Output in France is forecast to expand by 1. per cent this year and 1.5 per cent next year, while Germany is set to grow by 1.6 per cent then 1.7 per cent.

Within the G7, only the US is expected to perform better than Britain.

‘In the United Kingdom, lower oil prices and improved financial market conditions are expected to support continued steady growth,’ the IMF said.

The World Economic Outlook report, which was published yesterday, will be seen as a boost for the Conservatives ahead of next month’s General Election.

The Fund also appeared to back Tory plans to return Britain to the black after years of borrowing and rising debt.

It will come as another blow to Labour leader Ed Miliband who has pledged to bring traditionally Left-wing policies back to Britain – mirroring the actions of Francois Hollande in France. The French president swept to power in 01 promising to take on the rich and big business, but the country’s economy has been in a rut ever since. Unemployment in France is 10.6 per cent compared to 5.7 per cent in Britain.

George Osborne used last month’s Budget to boast that Yorkshire has created more jobs than the whole of France.

The Chancellor yesterday said the recovery would be put at serious risk by a Labour government propped up by the Scottish National Party. ‘These IMF growth forecasts for the UK are further proof our economic plan is working,’ he said. ‘So we must finish the job.’

IMF chief economist Olivier Blanchard warned that debt levels are ‘very high’ in many European countries and said ‘it would be desirable to decrease them’.