Economic comparisons between nations are routinely weaponised for political purposes — each side selecting the metric that flatters their argument. Here is an attempt at an honest comparison between the UK and its nearest European peers.
GDP Growth
UK GDP growth in 2025 was 1.0%, placing it seventh among G7 nations. Germany (-0.2%), France (0.7%), and Italy (0.5%) all underperformed the UK. The United States (2.3%) and Canada (1.8%) outperformed significantly.
Against the European Union average of 1.2%, the UK was a fraction below.
Inflation
The UK has achieved a faster return toward its inflation target than some European peers. UK CPI at 2.8% is lower than the EU average of 3.2%, though both remain above their respective 2% targets.
Unemployment
UK unemployment at 4.6% compares favourably with the EU average of 5.9%. Germany (3.4%) and the Netherlands (3.6%) outperform the UK; France (7.1%) and Spain (11.2%) have significantly higher rates.
Real Wages
The picture here is least flattering for the UK. UK real wages (adjusted for inflation) are still below their 2008 level — a uniquely poor long-term performance among comparable economies. German real wages are around 15% higher than their 2008 level; French wages around 8% higher.
Investment
UK business investment as a share of GDP consistently ranks near the bottom of OECD comparisons, at around 9% versus Germany's 12% and France's 11%. This long-term underinvestment is widely considered the primary driver of UK productivity stagnation.
The Honest Verdict
The UK is neither the basket case described by those most pessimistic about Brexit's effects, nor the outperformer claimed by its proponents. It sits in the middle of the European pack on most measures, with a distinctively poor long-term record on investment and real wage growth.
