France has overtaken the UK as the biggest stock market in Europe, in another sign of the shrinking of Britain’s economy. It comes as the Government prepares to announce a set of tax rises and spending cuts on Thursday to achieve a budget shortfall of up to £60billion, in a bid to tackle soaring inflation.
Paris’ stock market is now in the number one spot after China’s easing of Covid lockdown rules sparked hope for increased spending on French luxury brands, Bloomberg reported.
According to the network, the French stock market is now worth $2.823 trillion (£2.386 trillion), narrowly edging out the UK at $2.821 trillion (£2.384 trillion).
Michael Saunders, a former Bank of England policymaker, blamed Brexit for the loss of another status symbol for the UK.
He told Bloomberg TV on Monday: “The UK economy as a whole has been permanently damaged by Brexit.
“Restoring stability and getting debt falling is our only option to reduce inflation and limit interest rate rises.”
Meanwhile, Britain’s rate of unemployment edged higher in the three months to September as the country heads for what is feared will be the longest recession in a century.
According to the latest figures by the Office for National Statistics (ONS), the rate of unemployment stood at 3.6 percent in the three months to September, up from 3.5 percent in the three months to August.
Moreover, due to strikes in August and September, over half a million working days were lost, representing the highest two-month total in more than a decade.