UK no longer in the world's top five economies, says Chancellor

The Chancellor of the Exchequer has admitted that the UK is no longer in the top five of a list of the world's largest economies.

Philip Hammond admitted the fall during Wednesday’s budget, where he announced Scotland would receive an “extra” £2bn in funding.

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He said: “Britain is the world’s sixth largest economy.”

Chancellor of the Exchequer Philip Hammond says the UK has dropped out of the world's top five economies. Picture: AP Photo/Frank Augstein

France replaced the UK in fifth sport, meaning the UK are now also behind the US, China, Japan and Germany.

Measuring the economy is not set in stone, with a number of possible factors considered, such as gross domestic product.

For 2016, data from the World Bank had the UK well above France with a GDP of $2.618 trillion.

Yet, forecasts from IMF for 2017 had France above the UK, which fits in to the Treasury’s official forecasting. It delivered the work forecast for economic expansion for the country in its history.

Chancellor of the Exchequer Philip Hammond says the UK has dropped out of the world's top five economies. Picture: AP Photo/Frank Augstein

The economy is expected to grow by 1.5 per cent and 1.4 per cent respectively over the next two years. A significant fall from the previous estimate of 2 per cent and 1.6 per cent.

The Office for Budget Responsibility, which gave these estimations, had said earlier in the year that the UK’s economy would grow 7.5 per cent in the next five years. It has now amended its forecast to 5.7 per cent over the same time frame.

Mr Hammond was in bullish mood however, expressing positivity.

“London is the number one international financial services centre,” he said. “We have some of the world’s best companies. And a commanding position in a raft of tech and digital industries that will form the backbone of the global economy of the future.

“Those who underestimate Britain, do so at their peril.”