BBC News
watch One-Minute World News
Last Updated: Monday, 7 January 2008, 03:22 GMT
Britons 'richer than Americans'
Money
Goods are more expensive in the UK compared with the US
The average UK person will this year have a greater income than their US counterpart for the first time since the 19th Century, figures suggest.

Analyst Oxford Economics said the UK's GDP per head of population will reach 23,500 - 250 higher than in the US.

However, because goods and services are cheaper in the US, Americans will have stronger purchasing power, it added.

UK GDP per capita will also be higher than in Germany (21,665) and France (21,700), Oxford Economics calculated.

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'."

Oxford Economics said that in 1993, following the last major recession and the UK's ejection from the ERM, GDP per capita in the UK was 34% lower than in the US, 33% lower than in Germany and 26% lower than in France.

It said the improved UK position reflected the sustained strong growth it has enjoyed since then and the recent strength of sterling.

Mr Cooper said: "The UK has been catching up steadily with living standards in the US since 2001, so it is a well-established trend rather than simply the result of currency fluctuations."



SEE ALSO
OECD warns of economic slowdown
06 Dec 07 |  Business
US reduces 2008 growth forecast
29 Nov 07 |  Business
UK economic growth revised down
23 Nov 07 |  Business
Services lift UK economic growth
19 Oct 07 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific