British GDP higher than American

January, 07, 2008

For the first time in more than a century, the average income in the UK exceeds that in the US.

The UK's GDP per head of population will reach £23,500 this year - £250 higher than in the US, according to analyst Oxford Economics.

It is also more than eight per cent higher than the GDP per head in France and Germany.

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In the early 1990s, the picture was very different - British GDP per capita was 34 per cent lower than in the US, 33 per cent lower than in Germany and 26 per cent lower than in France.

The shift reflects the boom in financial services, increasing house prices and the strength of the pound, according to the analyst.

Managing director Adrian Cooper said: "The last 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'."

However, Brits cannot afford to feel smug - cheaper products and services mean Americans will still have stronger purchasing power, Oxford Economics said.