Commonwealth's Economy is Gradually Overtaking the European Union
Queen Elizabeth will be welcoming Commonwealth leaders to the Buckingham Palace and Windsor Castle as the UK sets its eyes on creating stronger ties with its former colonies post-Brexit.
Theresa May and Commonwealth leaders will hold a series of meetings at the palace during the summit in 2018.
This would represent the first of its kind that the palace gates have been opened for meetings with Commonwealth heads of state. This makes its quite obvious the UK’s strategy to woo its former colonies into building stronger trade ties in order to get good trade deals from them and be able to survive outside the EU.
According to Boris Johnson, the Commonwealth will soon overtake the EU with regards to the size of its economy. He surmised that, ‘It is a stunning fact that when the UK joined the Common Market back in 1973, the 28 countries then had about 38 per cent of global GDP. The Commonwealth then was about a quarter of that. ‘The EU and the Commonwealth in GDP, in output terms are now roughly level-pegging and the Commonwealth is growing far faster', he concluded.
The 52 countries which make up the Commonwealth have a total population of 2.4 billion, which currently remains very vital to the UK’s future trading prospects after ties are broken with the EU.
Its made up of advanced economies like Australia, Canada and New Zealand, and also includes emerging markets such as India, Malaysia and South Africa.
With an estimated population of 510,056,011, covering 7.3% of the world population, the EU in 2016 generated a nominal gross domestic product (GDP) of US$ 16.477 trillion, constituting approximately 22.2% of global nominal GDP and 16.9% when measured in terms of purchasing power parity.
Also, the Commonwealth in 2014 had an estimated population of 2.328 billion people, nearly a third of the world population and generated a nominal gross domestic product (GDP) of US$ 10.45 trillion, representing 14% of the gross world product when measured nominally and 17% of the gross world product when measured in purchasing power parity (PPP)
Trade across the Commonwealth has further been projected to be worth $1 trillion (£821 billion) by 2020.
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