The UK is not currently experiencing economy-wide deflation, though some sectors, particularly non-food goods, experienced a period of deflation in 2024 and 2025. Overall inflation has cooled significantly from 2022 highs, with substantial price falls in specific areas, but general, sustained downward price pressure across the entire economy is not in effect.
Vicky Redwood, chief UK economist at Capital Economics, concedes that the UK is “within a whisker of deflation” and will probably get there soon. But she is in the camp that this will not be a negative for the economy.
Britain's economic growth has experienced a slowdown since its heyday of the 1950s and 1960s. From 1992 until 2007, GDP per capita growth averaged 2.34% per year. Since 2008 this has fallen to 0.46% per year. Growth has effectively flatlined since 2023.
Since before the Great Recession, the UK has had lower levels of investment than many similar countries, such as France and Germany. After the Great Recession, investment fell heavily in the UK, as businesses couldn't afford to invest as much, and the government chose not to due to the growing deficit.
Defensive sectors like utilities and consumer staples often hold up better during downturns. Cash options like money markets or CDs offer stability but lower yields.
Brits are leaving the UK due to a combination of factors, primarily driven by young professionals seeking better economic prospects, a higher quality of life, and lower living costs, with destinations like the UAE, Australia, and the US offering higher salaries (often tax-free), better work-life balance, and warmer climates, contrasting with the UK's rising cost of living, stagnant wages, housing crises, and tax burdens.
Exactly, if you take the rich parts of London out of the picture, the UK is one of the poorest countries in Europe. Living standards in the poorest parts of the UK are lower than the poorest parts of Lithuania and Slovenia.
Experts generally don't predict a major "crash" for the UK housing market in 2026, but rather a period of modest, gradual price growth (around 2%) driven by anticipated interest rate cuts, improved affordability, and steady demand, though some economists suggest a larger correction (peak in 2026, crash in 2027-28) might be due to long-term cycles. While real-terms value has fallen recently, a full crash like 2008 is considered unlikely due to fundamental supply issues, with forecasts pointing to stability or modest rises as buyers return.
Which country is best to live in Europe financially?
Data for Monaco and Liechtenstein is from 2020 and 2019 respectively. Monaco is home to one of the world's wealthiest populations, and has the highest level of GDP per capita in Europe. Like Monaco, the small size of Liechtenstein has led to it being among the highest ranked European states for GDP per capita.
The "Big Three" of Europe generally refers to France, Germany, and the United Kingdom (UK), especially in foreign policy and security, forming the informal "E3" for major diplomatic initiatives like Iran nuclear talks. Within the EU, the trio often includes France, Germany, and Italy due to their combined economic power and founding roles, though the UK was part of the grouping before Brexit, while France, Germany, Italy, and the UK are collectively called the "Big Four".
In 2022/23, 47% of UK adult (28.3 million people) experienced financial insecurity. This was sharply up from 29% or 16.7 million in 2014/15. 9% (5.2 million) faced combined financial, housing and health insecurity, up from 6% (3.4 million) in 2014/15.
Is It Cheaper to Live in Germany or the UK? Germany is generally more affordable than the UK, with lower housing costs and utilities in most regions. For example, renting a one-bedroom apartment in Berlin averages €1,200 per month, compared to around £1,600 in London.
By 2050, China is projected to be the world's largest economy by total GDP, followed by the United States and India, with major shifts as emerging markets like Indonesia, Brazil, and Mexico rise significantly, though Singapore and Luxembourg may lead in GDP per capita (average wealth per person).
