Singapore Markets closed

UK growth rankings holds firm amid Brexit talks

Jillian Ambrose
KPMG's annual survey of global growth potential has ranked Britain 13th on its growth potential indicator - © 2014 Bloomberg Finance LP.

The UK’s economic growth potential held firm in the first year following the Brexit vote and could climb the global rankings in the years ahead, thanks in part to backing for emerging technologies such as Artificial Intelligence (AI).

The accountant KPMG’s annual survey of global growth potential has ranked Britain 13th on its growth potential indicator, ahead of Germany which dropped two places to 14th place and France which failed to make the top 20 league table.

KPMG said Britain maintained its ranking despite the uncertain future of its trade relationships, and “there is everything to play for to move the UK higher up the rankings” through the Government industrial strategy plans.

The report found that while many low and middle income countries prioritise investment in infrastructure and transport, it is investment in technological infrastructure which is key for future growth potential.

The Netherlands is the only country to top KPMG’s tracker for both transport and technology investment, securing the country’s place at the top of the rankings for another year.

The Government has announced a series of funding initiatives for AI over the past 12 months Credit: Getty

Technology and AI has become a crucial target for public and private investment in the UK, which has a strong academic base in the field.

The Government has announced a series of funding initiatives over the past 12 months, anticipating that AI will make a net contribution of $814bn (£630bn) to the UK economy by 2035.

“Crucially, it has specifically acknowledged the need to invest in education and long-term expertise, making the case for embedding understanding of AI across STEM education at all levels,” the KPMG report said.

KPMG’s report revealed that in the last decade Western Europe has usurped developed Asian economies in the race to adopt new technologies. Since 2012 Western Europe has been second on its tech adoption tracker and is narrowing the gap with leaders in North America.